Nepra announces reduction in power prices

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has announced a nationwide reduction in electricity prices under the monthly fuel cost adjustment (FCA).

As per the latest decision announced on Wednesday, Karachi’s electricity consumers will see a reduction of Rs4.03 per unit, while the rest of the country will benefit from a 50-paisa per unit cut.

Nepra stated that the relief will reflect in July's electricity bills for all eligible consumers.

According to the notification, the adjustment for K-Electric pertains to April 2025, while the rest of the country's reduction applies to May 2025's fuel cost adjustment.

It was also noted that K-Electric had requested a reduction of Rs4.69 per unit under the April adjustment.

The power regulatory authority stated in its notification that the refund was decided on account of variation in fuel charges for April 2025 in the approved tariff of the power company and to be passed on to the consumers in the billing month of July 2025.

As per Nepra's directives, the notification shall apply to all the consumer categories except lifeline consumers, domestic protected consumers, electric vehicle charging stations (EVCS) and prepaid electricity consumers of all categories who opted for pre-paid tariff.

It also directed the KE to show the adjustment separately in the consumers' bills on the basis of units billed to the users, in the respective month to which the adjustment pertains.

Last month, the federal government had abolished the provincial electricity duty on power bills effective July 1, and officially notified all chief ministers of the decision, which aimed at easing the burden on electricity consumers.

Federal Minister for Power Awais Leghari has written a letter to the chief ministers of all provinces, notifying them of the federal government's decision to scrap electricity duty and explore "alternative mechanisms" for collecting provincial levies and duties.

In the letter — a copy of which is available with Geo News, the minister sought the support of all provincial chief executives in removing complexity arising from multiple charges, taxes, and duties being collected through consumer bills.

He expressed confidence that the move will not only make electricity bills more transparent and easier to comprehend but also ensure that "consumers are paying only for the cost of electricity, rather than a mix of other charges".

The energy minister also sought the cooperation of all chief ministers in identifying and implementing alternative revenue collection methods will be instrumental in making this initiative a success.