NEPRA Slashes Power Tariffs: Who Benefits and How Much You Save

In a move to provide financial relief to power consumers, the National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs for both ex-WAPDA distribution companies (DISCOs) and K-Electric (KE) consumers.

The new tariffs, which reflect the fuel cost adjustment (FCA), will reduce DISCOs’ rates by Rs1.22 per unit, based on fuel charges for December 2024. K-Electric customers will see a slightly larger reduction of Rs1.23 per unit, which corresponds to the FCA for November 2024. These changes will be reflected in consumers’ bills for February 2025.

The FCA mechanism, designed to adjust electricity prices based on fuel cost fluctuations, ensures that any decrease in fuel prices is passed on to consumers. While this reduction will bring some relief to many, it will not apply to all customer categories. Lifeline consumers, domestic users consuming up to 300 units, Electric Vehicle Charging Stations (EVCS), prepaid electricity consumers, and agricultural consumers of all ex-WAPDA DISCOs will not benefit from this reduction.

For those eligible, the revised tariffs will appear in their upcoming billing cycles. If a bill for February 2025 is issued before the notification, the adjustment will be applied in the following month. The decision also clarified that domestic consumers with Time of Use (ToU) meters, regardless of consumption level, will also benefit from the reduction.

This tariff cut is a welcome development for many, as it reflects the decrease in fuel costs, providing some financial relief to electricity consumers across Pakistan.