ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs under the monthly fuel cost adjustment (FCA), providing relief to consumers across the country.
According to official notifications issued on Thursday, K-Electric (KE) consumers will see a reduction of Rs3.021 per unit in their electricity bills, while consumers in the rest of the country will benefit from a Re0.464 per unit cut. The relief will be reflected in April’s electricity bills.
The price adjustment for KE applies to January 2025, whereas the reduction for other regions is based on February 2025 fuel cost adjustments.
Pakistan’s rising electricity costs have triggered social unrest and hindered industrial growth in the $350 billion economy, which has experienced contraction in recent years due to record-high inflation.
Who Will Benefit?
This reduction applies to most consumers, excluding lifeline users, electric vehicle charging stations, protected consumers, and prepaid customers. However, NEPRA has also approved an additional Re0.90 per unit relief for power distribution company (Discos) consumers—except lifeline and protected categories—over three months from April to June 2025, amounting to a total benefit of Rs23 billion.
Last month, the federal government reinstated fuel adjustment benefits for consumers using up to 300 units and for agricultural tube-wells, aiming to ease financial pressure on households and farmers. These benefits were originally discontinued in June 2015, according to a Power Division spokesperson.
Additionally, NEPRA confirmed that the FCA adjustment will apply to domestic consumers with Time of Use (ToU) meters, regardless of their energy consumption.
Quarterly FCA Adjustment Brings Further Relief
Beyond the monthly FCA reduction, NEPRA has also approved a negative quarterly adjustment of Rs1.9004 per unit for Discos and KE consumers—excluding lifeline and prepaid customers. This quarterly adjustment, totaling Rs56.38 billion for the second quarter of FY 2024-25, will be spread across April to June 2025, further easing the burden of high electricity costs.
IMF-Driven Tariff Adjustments
In recent years, Pakistan has had to increase electricity tariffs under an International Monetary Fund (IMF) agreement aimed at reducing unsustainable public debt in the power and gas sectors. However, the latest adjustments offer some relief to inflation-stricken consumers, mitigating the financial strain of soaring energy prices.
