According to the report, the regulator had completed a public hearing
on THE KECA on February 23.

The 11-month monthly FCA collection is a boon for consumers because it
will be a refractive one of the increases in the tag.

According to The Nepra decision, the MAXIMUM reduction from THE FCA for
6 out of 11 months is Rs 1.21 per unit while a maximum of Rs 2.13 per unit for
5 months.

The regulator decided to approve the impact of these adjusting in three
months, March, April and May 2021, to ensure the stability of the tag.

Thus, the MARCH bill will reduce the FCA by about 14 p.a. which is a
difference of Rs 1.21 per unit increase in THE FCA for July 2019 and Rs 1.35
per unit reduction in May 2020.

The average reduction in the month of April 2021 is Rs. 1.34 per unit
as the increase in three months (August, September 2019 and February 2020) was
adjusting against the decline in two months (November 2019 and April 2020).

Similarly, consumers will get 72 p.m. relief in May as the FCA was down
in two months and up in the other two months.

The regulator said that negative FCA would apply to all consumer
categories except the lifeline users.

They said that ‘negative FCA effects will not apply to local users who
use up to 300 units and consumers associated with K-Electric’s agriculture
sector are also involved as consumers of these cottages are already enjoying
the rates of the sub-se.’

The main reason for negative adjusting in April to June 2020 is the
reduction in fuel prices that were caused by Covid 19.

Furnace oil prices also fell from Rs 57,000 per ton in March 2020 to Rs
35,000 per ton in May 2020 and then to Rs 55,000 per ton from July to December
2020.

Similarly, r-LNG prices had also come down from Rs 1800 per MMBTO in
March to Rs 1,40 per MMBTU in June 2020 and then to Rs 1300 per MMBTO in
December 2020.