KE consumers set to get Rs4.95 per unit relief in March bills

ISLAMABAD: K-Electric (KE) consumers are set to receive a Rs4.95 per unit relief in their March electricity bills as the National Electric Power Regulatory Authority (Nepra) reviewed the utility’s fuel charge adjustment (FCA) for December 2024.

At a Nepra public hearing on Wednesday, KE officials said the privatised utility’s dependence on state-owned power generation had risen sharply, with nearly three-fourths of its December 2024 energy demand (74 per cent) meeting through Central Power Purchasing Agency-Guarantee (CPPA-G), up from 52 per cent. They noted a favourable shift in KE’s fuel mix, with furnace oil use dropping to zero from a reference level of 13 per cent and RLNG consumption falling to 19 per cent from a projected 21 per cent.

KE officials attributed the latest reduction to lower reliance on expensive furnace oil and increased power procurement from the Central Power Purchasing Agency.

The proposed negative FCA marks the fourth consecutive monthly reduction for KE customers. In previous months, KE passed on FCA reliefs of Rs4.98 per unit for November, Rs0.27 for October, and Rs0.16 for September.

Consumer concerns dominated the hearing, with a Karachi resident questioning FCA disparities between KE and other power distribution companies (Discos). Nepra Member Technical (Sindh) Rafique Ahmed Shaikh stated that KE had provided greater FCA relief over the past two years. Another consumer urged Nepra to apply negative FCA adjustments during summer months in order to ease peak-season bills. Stakeholders also sought updates on KE’s Bin Qasim Power Station I (BQPS-I) Units 1 and 2. KE representatives said an extension request had been submitted, but no decision was made, and no costs were passed to consumers.

Nepra officials confirmed that Rs5.4 billion from November’s FCA relief remains withheld and will be adjusted once finalised. A formal decision on December’s FCA is expected in the coming weeks.