ISLAMABAD: Power consumers across the country will find a relief in the form of
cut in power tariff as the National Electric Power Regulatory Authority (NEPRA) has notified a reduction in electricity tariffs for
consumers of both ex-WAPDA distribution companies (DISCOs) and K-Electric (KE).
According to NEPRA, the tariff for DISCOs has been decreased by Rs1.22 per unit, reflecting the fuel cost adjustment (FCA) for December, 2024. Similarly, K-Electric (KE) consumers will benefit
from a Rs1.23 per unit reduction, corresponding to the FCA for
November 2024.
Moreover, cut in power tariff for consumers of DISCOs and KE will be passed on to the electriicty consumers of
both will be charged in the billing month of February, 2025.
The FCA mechanism allows for periodic adjustments in electricity tariffs based on fluctuations in fuel prices. In this instance, the reduction for DISCOs pertains to the fuel charges for December 2024,
while the reduction for KE applies to November 2024.
These adjustments aim to pass on the benefits of decreased fuel costs to
consumers, providing them with financial relief.
However, it’s important to note that this reduction will not be applicable to all consumer categories. According to NEPRA’s decision, lifeline consumers, domestic consumers consuming up to
300 units, Electric Vehicle Charging Stations (EVCS), prepaid electricity consumers of all categories who opted for prepaid tariffs, and agriculture consumers of all the XWDISCOs will not benefit from this tariff cut.
This means that a significant portion of the consumer base will continue to pay the existing rates.
For the consumers who are eligible for the reduction, the decreased rates will be reflected in their upcoming billing cycles.
Specifically, the fuel charges adjustment sought by the DISCOs for the month of
December and KE for the month of November 2024 will be shown
separately in the consumers’ bills based on the units billed in that
month.
If any bills for February 2025 are issued before the notification of this decision, the adjustment will be applied in the
subsequent month. This ensures that consumers receive the benefit of
the reduced tariffs in a timely manner.
NEPRA has also clarified that the negative adjustment on account of the monthly FCA is applicable to domestic consumers with Time of Use (ToU) meters, irrespective of their consumption level. This
clarification ensures that consumers with ToU meters are not excluded
from the benefits of the tariff reduction.
In summary, NEPRA’s approval of the reduction in electricity tariffs
for DISCOs and KE consumers is a positive development for many
electricity users.
The revised tariffs will offer some respite to consumers, reflecting the decreased fuel costs in their electricity bills.
While not all consumer categories will benefit from this reduction, those who are eligible can expect to see lower electricity bills in the coming months.
