The National Electric Power Regulatory Authority (NEPRA) has authorized a reduction of Rs1.28 per unit in electricity rates for September 2024 under the Fuel Charges Adjustment (FCA), as announced in a notification on Wednesday.
This change, effective from the November billing cycle, aims to ease consumer expenses amid global fuel price volatility affecting monthly electricity bills.
The reduction does not apply to K-Electric’s tariff system, which exclusively serves Karachi.
Initially, the Central Power Purchasing Agency (CPPA) requested a 71 paisa per unit decrease for September based on its data. However, after thorough analysis and a public hearing on October 30, NEPRA opted for a larger cut of Rs1.28 per unit.
This adjustment is more significant than the 86 paisa reduction in August, providing consumers with an additional relief of 42 paisa per unit for September.
Under the FCA, September’s power tariff has been reduced by Rs1.28 per unit.
NEPRA stated that this FCA reduction will apply to most consumer categories, excluding lifeline customers, domestic users consuming up to 300 units, electric vehicle charging stations, prepaid customers, and agricultural connections.
Additionally, NEPRA confirmed that domestic users with Time of Use (ToU) meters will benefit from the adjustment, regardless of their consumption levels.
The FCA mechanism adjusts electricity tariffs based on the fuel costs incurred by power producers. When fuel prices decrease, consumers see lower electricity bills, while rising fuel costs lead to higher charges.
For September, 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.
NEPRA instructed all relevant Distribution Companies (DISCOs) to comply with court orders when implementing this FCA adjustment. The Authority also noted that DISCOs would incorporate this reduction into the November billing cycle for eligible customers.
