NEPRA approves Rs 3.64 per unit decrease in power tariff

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has provided Rs 3.64 per unit relief for K-Electric consumers under the Fuel Charges Adjustment (FCA) for February 2025 in May 2025 electricity bills.

NEPRA has also conditionally held PKR 3 billion because of partial load, open cycle, degradation curves, and startup costs, confirming that future financial burdens are lessened.

Fuel charge adjustments are a standard mechanism used to align with fluctuations in fuel price globally and variations in the generation mix.

Upon the decline of fuel prices globally, consumers benefit because of negative FCAs, which reduce their electricity costs.

According to the notification, NEPRA has announced that the PKR 3.64 per unit relief will apply to all consumer categories except Lifeline consumers, Domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and Prepaid electricity consumers

Recent reports mention that NEPRA has also approved a tariff reduction of PKR 1.55 per unit on a quarterly basis for Distribution Companies (Discos) and KE, easing electricity prices for consumers further.

In combination with the FCA relief, KE customers will have a total reduction of PKR 5.19 per unit in their May 2025 bills.

Future adjustments for June and July will depend on upcoming FCA data.

Earlier, the National Electric Power Regulatory Authority (NEPRA) formally granted a license to the Independent System and Market Operator (ISMO), which now takes over the Central Power Purchasing Agency’s role.

This independent electricity market system lets consumers buy electricity straight from suppliers, moving away from traditional distribution companies.

The improvement is designed to promote efficiency and transparency in power trading, gradually reducing the role of the government as the only electricity buyer.