By Staff Reporter
ISLAMABAD: The power regulator has mandated a refund of Rs1.7856 per unit for electricity consumers in September bills, citing overcharges in July, while sharply criticising systemic governance failures that continue to drive up costs and erode grid reliability.
The National Electric Power Regulatory Authority (Nepra) issued a notification on Tuesday, stating it “decided to allow a negative FCA [fuel cost adjustment] of Rs1.7859/kWh for July 2025, to be passed on to the consumers in the billing month of September 2025.”
The adjustment applies to customers of state-run ex-Wapda distribution companies (XWDiscos) and K-Electric, Pakistan’s largest private utility, serving Karachi. Excluded are lifeline consumers, protected domestic users, electric vehicle charging stations, and prepaid electricity customers.
The refund stems from Nepra’s monthly review of fuel charges, which revealed that utilities billed consumers above actual fuel costs for power generated in July. The adjustment will appear as a separate line item in September bills, based on units consumed in July.
Nepra also noted that “in case any bills of September 2025 are issued before the notification of this decision, the same may be applied in the subsequent month.”
In a parallel move, Nepra addressed a prior oversight for K-Electric consumers, ordering a separate negative FCA of Rs0.7772 per unit for June 2025 consumption, to be reflected in September bills. This follows a federal Cabinet decision on Aug. 29 to standardise FCAs across all utilities, aligning K-Electric with state-run distributors. The policy, effective from June 2025, aims to ensure uniform adjustments nationwide, with any financial shortfalls covered by subsidies or cross-subsidies.
Nepra’s technical member issued a scathing critique alongside the refund orders, pointing to “chronic governance failures” as the root cause of escalating power costs, inflated fuel charges, and worsening outages. The regulator highlighted years of delays in critical energy projects and grid modernization, which have strained Pakistan’s power sector and burdened consumers with unreliable service and high tariffs.
The remarks underscore mounting pressure on Pakistan’s energy sector, already grappling with circular debt exceeding Rs2.5 trillion and frequent blackouts that disrupt households and industries. The government has pledged reforms, including privatisation of state-run distributors and incentives for renewable energy, but progress remains slow amid fiscal constraints and political resistance.
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