NEPRA Announces Power Tariff Reduction of Up to Rs3 Per Unit

Good News for Power Consumers: NEPRA Announces Fuel Cost Adjustment Refund

In a welcome relief for electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has announced a reduction in power tariffs by up to Rs3 per unit as part of the Fuel Charge Adjustment (FCA).

Breakdown of the Tariff Reduction

According to NEPRA’s notification:

• Consumers of government-owned DISCOs will see a Rs2.12 per unit reduction in their bills.
• K-Electric (KE) consumers will receive a Rs3 per unit reduction.

The lower electricity prices will be reflected in consumers' March 2025 bills.

Who Will Benefit?

The refunds apply to:

• DISCOs’ consumers for January 2025
• K-Electric consumers for December 2024

However, this tariff reduction does not apply to:

• Electric Vehicle Charging Stations (EVCS)
• Lifeline consumers
• Prepaid metering users
• Agricultural consumers

Why the Reduction?

Fuel Charge Adjustments (FCA) are routine adjustments made due to fluctuations in global fuel prices and changes in the electricity generation mix. NEPRA scrutinizes these changes before passing them on to consumers.

Previously, the Central Power Purchasing Agency Guarantee Limited (CPPA-G) had proposed a refund of Rs2.32 per unit as part of the January 2025 FCA. Their petition stated that:

• Over 7.816 billion units of electricity were produced in January.
• The reference fuel cost was Rs13.1 per unit, while the actual cost came out to Rs10.78 per unit.
• The Rs2.32 per unit difference was recommended for a refund.

Similarly, K-Electric also filed a petition for a Rs4.95 per unit reduction, citing higher charges in December 2024.

Final Thoughts

This power tariff reduction is expected to bring some relief to consumers amid fluctuating energy costs. With global fuel prices constantly shifting, such adjustments remain a key mechanism in ensuring fair electricity pricing for the public.