Pakistan’s NEPRA Approves Rs1.28 Per Unit Electricity Price Reduction

  • NEPRA has approved a Rs1.28 per unit reduction in electricity prices , effective in November’s billing cycle, relieving consumers.
  • The price cut, which follows a public review, will not apply to K-Electric customers and excludes specific consumer categories, including lifeline and agricultural users.

The National Electric Power Regulatory Authority (NEPRA) has approved a Rs1.28 per unit reduction in electricity prices for September 2024 under the Fuel Charges Adjustment (FCA), effective in the November billing cycle. The decision, announced on Wednesday, 6th October 2024, relieves consumers impacted by fluctuations in global fuel prices, which influence monthly power bills.

This price reduction does not apply to K-Electric, the exclusive electricity provider in Karachi, which operates under a different tariff regime. Based on its data, the Central Power Purchasing Agency (CPPA) initially requested a minor reduction of 71 paise per unit for September. However, following a public hearing on October 30, NEPRA approved a more significant decrease of Rs1.28 per unit, offering consumers an additional relief of 42 paisa per unit compared to the previous month’s 86 paisa reduction.

The FCA reduction will apply to most consumer categories, except for lifeline customers, domestic users consuming up to 300 units, electric vehicle charging stations, prepaid customers, and agricultural connections. Domestic users with Time of Use (ToU) meters will also benefit from the adjustment, regardless of their consumption levels.

The FCA mechanism adjusts electricity tariffs based on the fuel costs incurred by power producers. When fuel prices decline, consumers see a decrease in their electricity bills, while increases in fuel costs lead to higher charges. For September, CPPA reported generating 12,487 gigawatt-hours (GWh) of electricity at an average price of Rs8.34 per unit, amounting to Rs104.1 billion in total production costs.

NEPRA also instructed all Distribution Companies (DISCOs) to comply with the court’s orders when implementing this FCA adjustment, ensuring the reduction is reflected in the November billing cycle for eligible consumers.

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