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NEPRA announces decrease in electricity tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has declared a reduction in electricity rates as part of the monthly fuel adjustment.

As per an official notification, consumers of K-Electric will see a decrease of Rs 4.03 per unit, while other regions across the country will experience a slight reduction of 5 paisas per unit. This adjustment, related to the monthly fuel cost variation, will be reflected in the electricity bills for July.

The tariff cut for KE customers is based on the fuel adjustment for April 2025, whereas the adjustments for May 2025 have resulted in lowered electricity rates nationwide. 

It is important to note that KE had requested a reduction of Rs 4.69 per unit. However, NEPRA approved a decrease of Rs 4.03, which is Rs 0.66 less than the requested amount. NEPRA concluded its hearing on KElectric’s plea for Rs 4.69 relief for Karachi consumers on June 30.

KE also highlighted that the adjustment factors included part load, degradation curves, and startup costs related to the generation tariffs of KE’s power plants for the period after June 2023. The company requested NEPRA to consider recovering these costs from negative fuel cost variations to prevent consumers from bearing additional burdens later.

Fuel charge adjustments are incurred by utilities due to fluctuations in global fuel prices and changes in the generation mix. These costs are passed on to consumers after NEPRA’s review and approval. When global fuel prices fall, customers benefit from negative Fuel Cost Adjustments (FCA), which can reduce their bills.