ISLAMABAD:Karaciites are set to receive a major relief in their upcoming July electricity bills, as the National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs. 4.0349 per unit under the Fuel Charges Adjustment (FCA) mechanism for the month of April 2025.
The decision comes in response to K-Electric’s petition for monthly FCA, following a decline in global fuel prices and a shift in the power generation mix. NEPRA’s approval means that millions of KE customers will benefit from this downward adjustment, offering much-needed financial reprieve amid persistently high electricity costs.
The relief will be reflected in electricity bills for July 2025 and applies to all KE consumer categories, excluding lifeline consumers, protected domestic users, Electric Vehicle Charging Stations (EVCS), and those using prepaid electricity meters.
NEPRA clarified that such adjustments are part of a monthly process where the actual cost of fuel used for power generation is compared with the reference cost built into consumer tariffs. When the actual fuel cost is lower, as was the case in April, the savings are passed on to the consumers.
“While effecting the Fuel Adjustment Charges, K shall keep in view and strictly comply with the orders of the courts notwithstanding this order, said NEPRA notification.
In addition to approving the Rs. 4.03 per unit relief, NEPRA has also provisionally withheld Rs. 800 million from KE’s April FCA claim. This amount pertains to pending cost adjustments related to partial load, open cycle operations, degradation curves, and start-up costs—as per NEPRA’s earlier determination for the control period beginning July 2023. This step aims to ensure that consumers are not burdened later by disputed or unaudited cost claims.
Fuel Charges Adjustments are sensitive to global trends in oil, coal, and LNG markets, and consumers benefit in the form of lower bills when international prices decline. These monthly variations are closely scrutinized and approved by NEPRA before being applied to consumer bills.
For KE consumers already grappling with inflation and surging utility bills, this Rs. 4 per unit relief is likely to offer tangible short-term savings. For instance, a household consuming 300 units in a month could see their electricity bill reduced by over Rs. 1,200 under this adjustment.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and KE Holdings (Formerly: Infrastructure and Growth Capital Fund or IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.
