The National Electric Power Regulatory Authority (NEPRA) has announced a reduction of Rs1.78 per unit in electricity tariffs for consumers nationwide, including Karachi, under the Fuel Cost Adjustment (FCA) mechanism for July 2025.
According to a notification issued on Tuesday, the adjustment will be reflected in electricity bills for September, providing temporary relief to millions of consumers amid rising inflation and energy costs. “The relief is based on the variation in fuel costs for July and will be reflected in electricity bills for September,” it stated.
The regulator’s data showed that the actual national average fuel cost for July stood at Rs8.0903 per kilowatt-hour (kWh), compared to a reference fuel cost of Rs9.8758/kWh. This variance led to a reduction of Rs1.7856/kWh, which will now be passed on to consumers.
The tariff cut will apply to all consumer categories served by K-Electric (KE) and Ex-WAPDA Distribution Companies, except for lifeline consumers, protected residential users, electric vehicle charging stations, and pre-paid meter users on fixed tariff plans. “Consumers will see this relief in their September bills, calculated based on their July electricity usage,” the notification added.
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NEPRA has instructed all distribution companies to clearly itemize the FCA adjustment on consumers’ bills. In cases where September bills have already been issued, the relief will be reflected in the following billing cycle.
The FCA mechanism is part of NEPRA’s routine monthly tariff adjustment process designed to align electricity prices with actual fuel costs incurred during power generation. “While implementing this FCA, KE and other distribution companies must comply with any relevant court orders,” the regulator warned.
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