Electricity Prices
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced a significant reduction in electricity prices across Pakistan under the monthly fuel charge adjustment (FCA).
Official notifications issued on Thursday confirmed that power tariffs for K-Electric (KE) consumers will decrease by Rs3 per unit, while for consumers in the rest of the country, tariffs will be reduced by Rs2.12 per unit. This relief will be reflected in electricity bills for March 2025.
According to NEPRA, the price reduction for K-Electric customers corresponds to the FCA adjustment for December 2024, whereas for consumers in other parts of the country, the adjustment is based on fuel charges from January 2025.
The regulator clarified that the FCA mechanism adjusts electricity prices according to fluctuations in fuel costs—lower fuel prices lead to reduced tariffs, while higher fuel costs result in increased electricity rates.
This adjustment, however, does not apply to certain consumer categories. Lifeline consumers, domestic users consuming up to 300 units, prepaid customers, electric vehicle (EV) charging stations, and agricultural connections will not benefit from this reduction.
On the other hand, domestic users with Time of Use (ToU) meters, regardless of their consumption levels, will be eligible for the reduced tariffs.
The revision in power rates comes amid a broader economic crisis in Pakistan, where unaffordable electricity tariffs have led to social unrest and forced many industries to shut down.
Pakistan’s $350 billion economy has faced significant challenges, with contractions in recent years due to soaring inflation and increased energy costs. NEPRA has also directed Distribution Companies (Discos) to comply with court orders regarding the FCA implementation.
Pakistan has been compelled to increase electricity tariffs as part of conditions set by the International Monetary Fund (IMF) to address the mounting financial crisis in the power and gas sectors.
The country has been struggling with liquidity challenges in the energy sector, with a growing backlog of arrears contributing to frequent power outages.
These arrears, which accumulate due to subsidies and unpaid bills, were a major sticking point in negotiations between the IMF and Islamabad before an agreement was reached.
The latest FCA relief is expected to provide temporary financial respite to consumers, but broader energy sector reforms remain crucial for long-term stability.
1 Comment
This is a huge relief for Pakistani citizens who have been struggling with high electricity bills for a while now. Hopefully, this reduction in prices will bring some respite to the common man.