Islamabad, Mar 7, 2025: The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs of up to Rs3 per unit as part of the Fuel Charge Adjustment (FCA) mechanism.
As per the official notification, government-owned distribution companies (DISCOs) will see a decrease of Rs2.12 per unit,
While K-Electric consumers will benefit from a Rs3 per unit cut.
Consumers will experience these reductions in their March 2025 electricity bills.
The relief has been sanctioned for DISCOs’ users for January 2025 and K-Electric customers for December 2024.
Fuel Charge Adjustments arise due to fluctuations in global fuel prices and changes in the energy generation mix. 
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Consumers see these adjustments in their bills only after NEPRA completes a thorough assessment and grants approval.
According to NEPRA’s directive, the FCA reduction will apply to all categories of consumers except for Electric Vehicle Charging Stations (EVCS), agricultural users, lifeline consumers, and prepaid metering users.
Previously, the Central Power Purchasing Agency Guaranteed Limited (CPPA-G) submitted an application advocating a tariff reduction, proposing a refund of Rs2.32 per unit to electricity consumers due to fuel cost adjustments for January 2025.
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The agency reported generating over 7.816 billion units of electricity during the month, with reference fuel costs billed at Rs13.1 per unit, while the actual generation cost was Rs10.78 per unit.
The CPPA-G requested reimbursing the Rs2.32 per unit surplus to consumers through their monthly bills.
Similarly, K-Electric (KE) also petitioned NEPRA for a power tariff reduction of Rs4.95 per unit.
The proposed refund stems from higher NEPRA electricity tariff charged in December 2024, prompting KE to seek compensation for its consumers.
This move aims to ease financial burdens on consumers while aligning NEPRA electricity tariff with actual fuel costs.
