NEPRA cuts power tariff by Rs 0.88/unit for one month, consumers to get relief in December bills

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs 0.88 per unit in power tariffs for one month under the Fuel Charges Adjustment (FCA) for October 2025.

The regulator notified the decrease on Tuesday, confirming that the relief will be passed on to consumers in their December bills.

According to the notification, the tariff cut will apply to all consumers of K-Electric and Ex-WAPDA Distribution Companies (DISCOs). However, lifeline consumers, protected consumers, electric vehicle (EV) charging stations, and prepaid meter users will not be eligible for this reduction. Officials noted that the lower rates will be adjusted in the upcoming billing cycle and shown separately based on units consumed during October.

NEPRA attributed the reduction to lower-than-expected power generation costs in October. The actual national average fuel cost stood at Rs 8.4869 per unit, below the reference cost of Rs 9.3685 per unit, resulting in a negative FCA of Rs 0.8816 per unit. The decision follows policy guidelines from the federal government directing the application of uniform FCAs to K-Electric consumers as well.

Earlier, the Central Power Purchasing Agency Guarantee Limited (CPPA-G), on behalf of DISCOs, had requested a reduction of Rs 0.65 per unit. CPPA-G reported that a total of 9,886 GWh of electricity was generated in October at a total cost of Rs 84.09 billion, translating to an average generation cost of Rs 8.5062 per unit. After accounting for transmission losses of 2.35% and adjustments, 9,630 GWh were supplied to DISCOs at a cost of Rs 8.7177 per unit, justifying the need for a downward tariff adjustment.

NEPRA clarified that the adjustment will be applied strictly in accordance with court orders and will be reflected only in December bills. Any bills issued before the notification will be adjusted in subsequent months.

It is pertinent to mention that the one-month cut offers temporary but meaningful financial relief to households already struggling under high electricity costs, marking one of the few consumer-friendly adjustments in recent months.