Govt decides to refund excess payments to power consumers

ISLAMABAD: The government of Pakistan has announced plans to refund excess payments made by electricity consumers, likely to reduce electricity costs by 30 paisas per unit, ARY News reported.

As per details, the Central Power Purchasing Agency (CPPA) filed a petition for monthly fuel price adjustments for February.

According to the CPPA, a total of 6.495 billion units of electricity were generated in February, while 6.666 billion units were supplied to power companies.

The cost of electricity per unit was Rs 8.22, with a reference cost of Rs 8.52 per unit for February.

In February, 27.12% of electricity was generated from water, 15.02% from local coal, 1.56% from imported coal, 10.32% from gas, 14.11% from imported LNG, and 26.59% from nuclear fuel.

The National Electric Power Regulatory Authority (NEPRA) is set to hear the CPPA’s petition tomorrow.

Also read: NEPRA reduces electricity tariffs by Rs3 per unit under FCA

Earlier, the National Electric Power Regulatory Authority (NEPRA) reduced the power tariff by up to Rs3 per unit on account of Fuel Charge Adjustment (FCA).

According to notifications, a reduction of Rs2.12 per unit was announced for consumers of government-owned DISCOs. Additionally, a price reduction of Rs3 per unit was approved for K-Electric consumers.

The benefit of reduction in electricity prices was passed on to customers in their March 2025 bills.

The refunds were approved for Discos’ consumers for January 2025 and KE’s users in December 2024.

Fuel Charge Adjustments incurred by utilities due to global variations in fuel prices used to generate electricity and changes in generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval.