The National Electric Power Regulatory Authority (NEPRA) approved a reduction of Rs. 10.79 /unit on account of Fuel Charge Adjustments (FCA) for December 2022. Through a notification, the Authority issued instructions on the benefits of negative FCA to consumers in February 2023.

The FCA is reviewed monthly per the tariff regime applicable across the country and is usually applicable on consumer’s bills for one month only. FCAs are linked with changes in global fuel prices and passed onto consumer bills under prescribed rules and regulations of NEPRA and the Government of Pakistan. December’s FCA request was lower primarily due to a reduction in prices of RLNG, furnace oil, and power purchased from CPPA-G by 17%, 15%, and 30%, respectively as compared to September 2022 and better utilization of generation mix.

For the past consecutive months, downward trends in prices of fuels have enabled KE to pass on the benefits of negative FCA to customers.