KE Fuel Costs: Partial Benefit for Consumers
- ISLAMABAD — K-Electric (KE) is asking the National Electric Power Regulatory Authority (Nepra) for permission to keep approximately 800 million rupees, stemming from a negative fuel cost adjustment...
- KE reported that its fuel costs were 7.2 billion rupees lower than what consumers were charged in April. The company has requested the regulator to consider this accumulated...
- According to KE, about 16 billion rupees is pending adjustment for the period between July 2023 and April 2025.
K-Electric (KE) aims to retain approximately 800 million rupees from a negative fuel cost adjustment (FCA), asserting consumers were overcharged in April. News outlets report KE’s request to the National Electric Power Regulatory Authority (NEPRA) stems from lower fuel costs. The power company maintains these funds should be retained to avoid future consumer burden. NEPRA will review the case on June 19,considering the accumulated FCA,which includes 16 billion rupees from July 2023 to april 2025,and heat rate adjustments. News Directory 3 is following the proceedings, as is the public, who pay the bills. The regulator will also be looking at the merit order followed. Discover what’s next for Karachi consumers?
K-Electric Seeks Fuel Cost Adjustment Retention from NEPRA
Updated June 12, 2025
ISLAMABAD — K-Electric (KE) is asking the National Electric Power Regulatory Authority (Nepra) for permission to keep approximately 800 million rupees, stemming from a negative fuel cost adjustment (FCA). The power company argues that it overcharged consumers 4.69 rupees per unit in April and seeks to retain these funds,mirroring past instances where Nepra allowed KE to keep fuel cost savings.
KE reported that its fuel costs were 7.2 billion rupees lower than what consumers were charged in April. The company has requested the regulator to consider this accumulated fuel cost adjustment, ensuring consumers are not burdened later.
According to KE, about 16 billion rupees is pending adjustment for the period between July 2023 and April 2025. This is due to the determination of the generation tariff for its power plants after June 2023, including partial load, open cycle, and degradation curves, along with startup costs.
The power company also cites pending heat rate adjustments for its Korangi and Port Qasim plants from a previous multi-year tariff, amounting to 600 million and 200 million rupees, respectively.
Regulator fixes public hearing on 19th to decide retention plea
Nepra has already set aside 15.2 billion rupees in KE’s fuel cost decisions from November 2024 to March 2025. KE has requested Nepra to consider the adjustment of accumulated actualization of fuel cost, allowing recovery from the negative fuel cost variation of March and April 2025.
nepra has scheduled a public hearing for June 19 to determine if the requested fuel cost adjustment (FCA) is justified. The hearing will also examine whether KE followed the merit order when dispatching power to its plants and purchasing power from external sources, including the national grid.
While Nepra has already settled 15.2 billion rupees of the 16 billion rupees requested through five monthly determinations, the regulator will also address KE’s request for adjustment of accumulated fuel costs related to partial load, open cycle, degradation curves, and startup costs from July 2023 to April 2025.
The fuel cost adjustment (FCA) is reviewed monthly, consistent with the national tariff regime.
What’s next
The public hearing on June 19 will be a crucial step in determining whether K-Electric will be allowed to retain the fuel cost adjustment benefit, potentially impacting consumers’ electricity bills.