NEPRA Approves Electricity Refunds: Rs1.9/unit Cut + Rs3/unit Back for KE Consumers

The National Electric Power Regulatory Authority (NEPRA) has approved a Rs1.90 per unit reduction in electricity bills for all consumers of Distribution Companies (DISCOs) and K-Electric, effective from April 1 to June 30, 2025. Alongside this, NEPRA has also approved a Rs3.021 per unit refund for K-Electric consumers for the month of January 2025, which will reflect in their April bills. These adjustments aim to provide financial relief to consumers across all categories, except lifeline users, protected home consumers, EV charging stations, and those using prepaid meters.

The Rs1.90 per unit quarterly adjustment translates into a total relief of Rs56.38 billion spread evenly across three months, while an additional Rs0.4641 per unit reduction for February 2025 will return around Rs3 billion to consumers through their April bills. For K-Electric users, the January refund alone amounts to Rs2.93 billion. NEPRA has also decided to return Rs23 billion in previously retained fuel cost adjustments (FCAs) from July 2024 to February 2025, giving back Rs0.90 per unit to consumers, excluding protected categories, over the April–June 2025 period.

Despite these reductions, NEPRA has expressed concerns about persistent issues in the power sector. There has been a consistent decline in electricity sales, and NEPRA has urged the Power Division to investigate the reasons behind it. Additionally, many power plants are being run out of order, violating the economic merit order and raising electricity costs due to higher fuel expenses. The regulator has called for immediate action to fix these inefficiencies.

NEPRA also warned about expected low water availability in the coming months, suggesting the government focus more on cost-effective power sources like nuclear energy, Thar coal, and imported coal plants. Further, it criticized the National Transmission and Dispatch Company (NTDC) for repeated delays in critical transmission projects that are vital for the system’s efficiency.

While these financial adjustments offer temporary relief, NEPRA’s comments highlight deeper structural problems that still need urgent fixes to ensure long-term stability and affordability in the energy sector.