The National Electric Power Regulatory Authority (Nepra) has approved reductions in electricity tariffs for both Distribution Companies (Discos) and K-Electric (KE) as part of its quarterly and monthly adjustment mechanisms.
For the third quarter of FY 2024-25, Nepra has sanctioned a tariff reduction of Rs 1.55 per unit for all Discos and KE under the Quarterly Tariff Adjustment (QTA) mechanism.Â
Additionally, a Rs 3.64 per unit reduction under the Fuel Charges Adjustment (FCA) mechanism was approved for KE for February 2025, while Discos will see a Rs 0.29 per unit reduction for March 2025.
These adjustments will offer significant relief to consumers, with KE customers receiving a total reduction of Rs 5.19 per unit in May 2025, combining both the QTA and FCA adjustments. The relief for June and July will depend on the upcoming FCA data. Discos consumers will receive a combined relief of Rs 1.82 per unit in their May 2025 electricity bills. However, the adjustments for June and July will be determined after the Central Power Purchasing Agency – Guarantee (CPPA-G) submits the necessary data.
The QTA notification from Nepra indicated a negative quarterly adjustment totaling Rs 52.603 billion for the third quarter of FY 2024-25. This adjustment will be spread over three months—May to July 2025—at a uniform rate of negative Rs 1.5538/kWh for all consumer categories, except lifeline and prepaid consumers.
In regards to KE’s FCA, Nepra has approved a provisional negative FCA of Rs 3.6396/kWh, subject to revision after the finalization of the Multi-Year Tariff (MYT) for FY 2024-30. Any discrepancies arising from the MYT will be adjusted in future periods. This reduction applies to all consumer categories, except lifeline consumers, protected domestic consumers, Electric Vehicle Charging Stations (EVCS), and prepaid consumers.
This reduction will be reflected separately in consumer bills based on units consumed during the relevant month. If May 2025 bills were issued before the notification, the relief will be incorporated in subsequent billing cycles.
For Discos, Nepra has determined a national average uniform reduction of Rs 0.2883/kWh in the tariff for March 2025 under the FCA mechanism. This will be applied to all consumer categories, excluding lifeline, protected, EVCS, and prepaid consumers, and reflected in May 2025 bills based on March consumption. Similar to KE, any early billing will be adjusted in the following months.
