NEPRA directs power tariff cut nationwide

KE tariff slashed by Rs3 per unit while XWDISCOS tariff cut by Rs2.124

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) on Thursday directed ex-Wapda distribution companies (XWDISCOs) and K-Electric (KE) to reduce the power tariff by up to Rs3 per unit for consumers.

The power regulator issued decisions based on the monthly fuel charges adjustments (FCA) for December 2024 in respect of KE and January 2025 for XWDISCOs.

The power regulator directed XWDISCOs to reduce the tariff by up to Rs2.124 per unit and KE by up to Rs3 per unit for Karachi consumers in their March 2025 electricity bills.

It is to be noted that in their petitions, KE suggested that it was ready to refund Rs4.95 per unit, while XWDISCOs were willing to return Rs2.0 per unit to their consumers.

These decisions shall apply to all consumer categories except lifeline consumers, domestic protected consumers, Electric Vehicle Charging Stations (EVCS), and prepaid electricity consumers of all categories who have opted for the prepaid tariff.

The regulator also clarified that if any March 2025 bills are issued before the notification of this decision, the adjustment may be applied in the subsequent month.

Rafique Shaikh, a member of the authority, handwrote a note on the decision, stating, "I am of the considered opinion that the impact of yet another violation of the Economic Merit Order (EMO) should not be passed on to consumers (i.e. around Rs1.5 billion)."

In the case of DISCOs other than KE, the power regulator noted that after the recent tariff rebasing and the re-targeting of power subsidies—resulting in the creation of a protected tariff category—the subsidy for non-protected residential and agricultural consumers has been significantly reduced. In light of this, and considering the submissions of the Ministry of Energy, Nepra has decided to pass on the negative FCA to all non-protected residential and agricultural consumers.