NEPRA reduces electricity tariffs

January 08, 2025 (MLN): The National Electric Power Regulatory Authority (Nepra) has approved a negative fuel cost adjustment (FCA) for January 2025 bills by up to 76 paisa per unit. 

Accordingly, ex-Wapda distribution companies (Discos) will see a reduction of 76 paise per unit, while K-Electric consumers will benefit from a cut of 49 paise per unit.

The adjustments will be reflected in electricity bills for January 2025.

The Fuel Charges Adjustment (FCA) is being applied on a temporary basis and may be subject to changes.

The adjustment for DISCOs will apply to all consumer categories except lifeline users, domestic consumers using up to 300 units, EV charging stations, prepaid electricity users, and agricultural consumers.

Domestic consumers with time-of-use (ToU) meters will also benefit from the negative adjustment, regardless of their consumption levels.

For K-Electric consumers, the Rs0.4919 per unit reduction will bring a total relief of Rs843 million.

This adjustment will also be reflected in January 2025 bills.

Nepra has provisionally allowed this FCA, subject to adjustments after the approval of K-Electric’s new multi-year tariff (MYT) for financial years 2024 to 2030.

The Authority determined a Multi-Year Tariff (MYT) for K-Electric Limited (KE) for a period of seven years, from July 2016 to June 2023, which expired on June 30, 2023, the notice reads.

The MYT provided a mechanism where in the Authority had to review and revise the approved tariff through monthly, quarterly and annual adjustments, the notification futher stated.

The notification also mentioned that as per the mechanism, impact of change in KE's own generation fuel cost component due to variation in fuel prices, generation mix & volume shall be passed on to the consumers directiy in their monthly bills in the form of Fuel Charges Adjustment (FCA).

Similarly, the impact of change in fuel component of Power Purchase Price (PPP) due to variation in fuel prices & energy mix shall also be passed on to consumers through monthly FCA, it added.

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