NEPRA reduces electricity tariffs by Rs3 per unit under FCA

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has 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 has been announced for consumers of government-owned DISCOs. Additionally, a price reduction of Rs3 per unit has been approved for K-Electric consumers.

The benefit of reduction in electricity prices will be 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 are 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.

As per the Regulatory Authority’s decision, the FCA shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers, prepaid metering consumers, and agricultural consumers.

Earlier, The Central Power Purchasing Agency Guarantee Limited (CPPA-G) moved the application for the lowering power tariff, proposing a refund of Rs2.32 per unit to power consumers, reflecting a fuel charges adjustment for January 2025.

Read More: Power consumers likely to get relief in January FCA

According to the petition, the CPPA said over 7.8160 billion units of electricity were produced in January, with the reference fuel charges billed to consumers were Rs13.1/unit, while the actual cost amounted to Rs10.78 per unit.

The CPPA-G has requested that the Rs2.32 difference be refunded to consumers through their electricity bills.

K-Electric (KE) also filed a petition with the NEPRA for Rs4.95 per unit power tariff cut.

K-Electric proposed refund comes after the utility charged higher per unit electricity rates in December 2024.