Except Karachi, electricity prices slashed for entire country

The National Electric Power Regulatory Authority (NEPRA) has approved a Rs1.28 per unit reduction in electricity prices for September 2024 under the Fuel Charges Adjustment (FCA), offering consumers relief from rising power bills.

The reduction, which will be reflected in November’s billing cycle, follows global fluctuations in fuel prices that directly impact electricity tariffs.

The decision comes after a detailed review of the Central Power Purchasing Agency (CPPA)’s request. Initially, CPPA had sought a smaller reduction of 71 paisa per unit, based on its data.

However, after a public hearing held on October 30, NEPRA opted for a larger reduction of Rs1.28 per unit, providing consumers with greater relief than the 86 paisa per unit reduction in August.

This adjustment, however, will not apply to K-Electric, the electricity distributor in Karachi, as it operates under a separate power tariff regime.

The FCA reduction will benefit most consumer categories, excluding lifeline consumers, domestic users consuming up to 300 units per month, electric vehicle charging stations, prepaid customers, and agricultural connections.

Domestic users with Time of Use (ToU) meters will also receive the reduction, regardless of their consumption levels.

NEPRA clarified that the FCA mechanism adjusts tariffs based on the fuel costs incurred by power producers.

For September 2024, the CPPA reported that 12,487 gigawatt-hours (GWh) of electricity were generated at an average cost of Rs8.34 per unit, totaling Rs104.1 billion in generation costs.

In its notification, NEPRA also instructed all concerned Distribution Companies (DISCOs) to ensure the FCA adjustment is implemented in accordance with court orders, and confirmed that the reduction will appear on eligible consumers’ bills for November.