NEPRA slashes power tariff for August

The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs0.86 per unit in August’s fuel charges adjustment (FCA).

The decrease is higher than the Rs0.57 per unit decrease initially requested by the Central Power Purchasing Agency.

During a public hearing on September 26, 2024, NEPRA decided on the reduction, which is Rs0.49 per unit less than the FCA charged in July.

As a result, consumers can expect a greater reduction in their October bills. Those who have already received their bills will receive this relief in November.

Who Benefits from the Reduction?

The adjustment will apply to all consumers of distribution companies (DISCOs), except for lifeline users, prepaid consumers, electric vehicle charging stations, K-Electric customers

How Does FCA Work?

Fuel Charge Adjustments (FCA) are decided by NEPRA to account for variations in fuel prices and generation mix. The actual increase or decrease in fuel cost prices is adjusted in customers’ monthly bills in the form of FCA.

Previous Adjustments

In the past, NEPRA has made adjustments to the FCA, including a reduction of PKR 1.67 per kWh for consumers’ July 2024 bills.

Additionally, NEPRA had set FCA rates of PKR 1.7111 per kWh and PKR 1.3946 per kWh for July 2023 and September 2023, respectively.