ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) on Thursday approved a reduction of Rs1.89 per unit in the power tariff across the country under the quarterly adjustment charges for April-June 2025.
The decision has been forwarded to the federal government for implementation. The reduced rates will apply to all power distribution companies (Discos), including K-Electric (KE).
The tariff cut will be applicable for a three-month period from Aug to Oct 2025 and is expected to provide a cumulative relief of Rs55.87 billion to consumers. However, Nepra clarified that the tariff reduction will not apply to lifeline and prepaid electricity consumers.
A notification dated Aug 7 said Nepra “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 (per kilowatt hour) shall also be charged from the consumers of K-Electric except life line and prepaid consumers, to be recovered in a period of three months [from] August 2025 to October 2025.”
The decision follows requests from distribution companies for a downward revision in tariffs as part of the quarterly adjustment. Nepra conducted a public hearing on the matter on Aug 4.
Quarterly tariff adjustments are used to reconcile costs related to power generation and capacity charges, separate from the monthly fuel price adjustments.
Meanwhile, Nepra also notified a negative fuel cost adjustment (FCA) of Rs0.78 per unit for consumers of all Discos except for KE in their bills for Aug.
According to a separate Nepra notification dated Aug 7, the authority decided on an FCA of Rs0.78 for the month of June 2025 based on variations in fuel charges in the approved tariffs of Discos.
Nepra decided that the FCA “shall be applicable to all consumer categories except lifeline consumers, protected consumers, Electric Vehicle Charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff,” the notification said.
The notification stated that Discos would reflect the June FCA in the billing month of Aug 2025, which would be shown separately on consumers’ bills based on the units billed to them in June.
“In case any bills of August 2025 are issued before the notification of this decision, the same may be applied in [the] subsequent month,” Nepra added.
“While effecting the Fuel Charges Adjustment, the concerned XWDiscos shall keep in view and strictly comply with the orders of the courts, notwithstanding this order.”
In another notification, Nepra replied to a request from the Central Power Purchasing Agency (CPPA-G) seeking a monthly FCA for June, finding that based on the information provided, the actual pool fuel cost was Rs.7.68 per kilowatt hour (kWh) against the reference fuel cost component of Rs.8.3341 per kWh
“The actual fuel charges, as claimed by CPPA, for the June 2025 decreased by Rs.0.65 per kWh as compared to the reference fuel charges,” the notification said.
