By Staff Reporter
ISLAMABAD: Pakistan’s electricity regulator, the National Electric Power Regulatory Authority (Nepra) on Thursday cut power tariffs by Rs1.8881 per kilowatt hour (kWh) for the next three months, offering relief to consumers of all power distribution companies (Discos), including K-Electric (KE), as they face steep energy bills.
The adjustment, effective from August to October 2025, will ease bills for most consumers.
Separately, Nepra approved a negative fuel cost adjustment (FCA) of Rs0.78 per unit for consumers of ex-Wapda distribution companies (XWDiscos), excluding KE, to be reflected in August bills. The decisions, detailed in notifications dated August 7, follow a public hearing and requests from Discos for tariff reductions.
The tariff cuts are projected to deliver a cumulative relief of Rs55.87 billion to consumers over the three-month period, stemming from savings in capacity payments during the fourth quarter (April-June) of FY2025.
Nepra’s quarterly adjustment slashes the uniform tariff by Rs1.8881/kWh, applicable to all Disco consumers except lifeline and prepaid categories. A notification stated that the authority “decided to allow the application of instant quarterly adjustments on the consumers of K-Electric as well, with the same applicability period.”
“Accordingly, the instant quarterly adjustment of negative Rs1.8881/kWh shall also be charged from the consumers of K-Electric except lifeline and prepaid consumers, to be recovered in a period of three months [from] August 2025 to October 2025.”
For bills issued before the notification, Nepra instructed adjustments in subsequent months, with Discos required to comply with court orders during implementation. The decision, forwarded to the government, responds to Disco requests for a negative adjustment of Rs1.80 per unit to refund Rs53.4 billion, as discussed in a public hearing on August 4.
In a separate move, Nepra notified a negative FCA of Rs0.78 per unit for XWDiscos consumers, excluding KE, based on June 2025 fuel charge variations. The adjustment applies to all consumer categories except lifeline, protected, electric vehicle charging stations (EVCS), and prepaid users.
The notification said XWDiscos “would reflect the June FCA in the billing month of August 2025,” shown separately on bills based on June units consumed. “In case any bills of August 2025 are issued before the notification of this decision, the same may be applied in [the] subsequent month.”
It emphasised compliance with court orders. “While effecting the Fuel Charges Adjustment, the concerned XWDiscos shall keep in view and strictly comply with the orders of the courts.” The FCA decision followed a request from the Central Power Purchasing Agency (CPPA-G), which reported an actual pool fuel cost of Rs7.68 per kWh for June, against a reference of Rs8.3341 per kWh.
“The actual fuel charges, as claimed by CPPA, for June 2025 decreased by Rs0.65 per kWh as compared to the reference fuel charges,” Nepra noted.
The tariff reductions come amid complaints of overbilling and rising electricity costs in Pakistan. Nepra’s August 4 hearing addressed these concerns, alongside Disco requests for negative adjustments. Quarterly adjustments reconcile power generation and capacity costs, distinct from monthly fuel price tweaks. For households and businesses, the cuts provide temporary financial respite. However, KE consumers miss out on the FCA relief, which applies only to XWDiscos.
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