ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs of up to Rs3 per unit under the Fuel Charge Adjustment (FCA) mechanism.
As per the official notifications, electricity rates for consumers of state-owned distribution companies (DISCOs) will be lowered by Rs2.12 per unit. Meanwhile, K-Electric consumers will benefit from a reduction of Rs3 per unit.
This relief will be reflected in consumer bills for March 2025. The refunds apply to DISCOs’ consumers for January 2025 and to K-Electric users for December 2024.
The FCA reflects the difference between reference fuel costs and actual fuel costs incurred due to global fuel price fluctuations and changes in the energy generation mix. NEPRA reviews and approves these adjustments before they are passed on to consumers.
NEPRA clarified that this adjustment will not apply to certain categories of consumers, including Electric Vehicle Charging Stations (EVCS), lifeline consumers, prepaid metering users, and agricultural consumers.
Previously, the Central Power Purchasing Agency Guarantee Limited (CPPA-G) had submitted a request seeking a reduction of Rs2.32 per unit in electricity tariffs, based on fuel cost adjustments for January 2025.
In its application, CPPA-G noted that over 7.81 billion units of electricity were produced in January 2025, with reference fuel costs set at Rs13.1 per unit. However, the actual cost came to Rs10.78 per unit, justifying a refund of Rs2.32 per unit for consumers.
K-Electric also filed a separate petition with NEPRA, requesting a reduction of Rs4.95 per unit for its consumers. The proposed refund follows higher electricity charges applied to K-Electric consumers in December 2024.
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