Electricity bills to reduce as capacity charges, fuel costs are reduced

• Refund connected to December 2024 FCA for Discos.
• For Ke, FCA -based returns for November 2024.
• The second quarterly adjustment can bring RS52BN refund.
  

ISLAMABAD: Electricity consumers can expect some relief in their power accounts next month, as the National Electricity Regulatory Authority (NEPRA) has directed state distribution companies (DESCOS) and K-Electric (KE) to return Rs1.23 per unit in February 2025 accounts, The news reported on Thursday.

Employees from the Power Department and Nepra provide for a continuous reduction in electricity invoices in the coming months, led by lower capacity payments and fuel cost adjustments, along with a stable rupee.

For Discos, the refund is linked to the adjustment of fuel charges (FCA) for December 2024, while for KE, it applies to FCA for November 2024.

Nepra (Tariff) member Mathar Niaz Rana noted in an additional statement that Ke had initially requested a negative FCA of RS4.98 per unit for November 2024. 21 billion).

The regulator withheld RS5.44 billion pending controls of RS8.7 billion costs linked to the load load, open cycles, degradation curves and starting costs in KE’s MyT. Employees discussed whether full relief from FCA should be transferred to consumers in advance or escalating during future determinations.

Returns will apply to all categories of consumers except life consumers, domestic users who consume up to 300 units, electric vehicle charging stations, prepaid electricity users and agricultural consumers of all disks. Domestic consumers with time -use measures (TOU), regardless of consumption levels, will also benefit. If February 2025 accounts are issued before Nepra notice, the refunds will be adjusted to the following month’s accounts.

Meanwhile, during public hearing on Wednesday, Nepra marked that discs, including KE, may be forced to return another more than RS52 billion to consumers under the second quarterly adjustment for October-December 2024-25 .

Nepra officials emphasized that the relief comes mainly from a reduction in charges of 50.66 billion Rs. This reduction is attributed to the termination of contracts for five electricity stations and the suspension of the Neelum-Jhelum hydroelectric power project.

Employees also referred to a relatively stable exchange rate of rupee as a factor that contributes to the lower financial pressure. If approved, the invoice will also extend to KE consumers.

Nepra Mathar Niaz Rana member pointed out that a significant decline in interest rates in recent months has further contributed to reducing power costs. He emphasized the need for detailed data submissions to Nepra for a complete analysis.

Pakistan’s circular debt was in 2,393 trillion Rs from June 2024, slightly reducing RS2,384 trillion by the end of December 2024, the official added.