Electricity prices declined in Pakistan under monthly adjustment of fuel charges

• Power invoices for KE consumers will see RS3 per unit.
• For other electricity values ​​they were reduced by Rs2.12 per unit.
• K-Electric is cut under Dec FCA, while the rest of the country for January.

ISLAMABAD: The National Electricity Regulatory Authority (NEPRA) has announced a decrease in electricity prices for consumers across the country under the monthly Fuel billing (FCA), official alerts issued on Thursday.

Power invoices for K-Electric (KE) consumers will see a cut of RS3 per unit in their accounts, while for the rest of the country they have been reduced by RS2.12 per unit.

According to notifications issued by the energy regulator, the relief will be reflected in the electricity accounts for March.

The reduction in prices for K-electricity applies to the December 2024 adjustment, while the decline for other parts of the country is based on the adaptation of January 2025.

Unaffected invoices have caused social upheavals and closed industries in the $ 350 billion economy, which has been twice in recent years, as inflation has hit high records.

This decrease in FCA applies to most categories, in addition to Lifeline consumers, electric vehicle charging stations and prepaid customers.

The federal government last month announced the restoration of the benefits of fuel cost adjustments for electricity consumers who use up to 300 units and agricultural pipes, with the aim of facilitating the financial burden of households and farmers.

The advantage of reduced fuel adjustment charges was initially stopped for consumers using up to 300 units in June 2015, according to a representative of the Power Department.

Nepra also confirmed that the adjustment would be effective for home users with use measures (TOU), regardless of consumption levels.

FCA reviews electricity invoices based on fuel cost fluctuations. The lowest fuel prices reduce accounts while higher costs increase. Nepra has also directed Discos to comply with the court orders on the FCA implementation.

In recent years, Pakistan has been forced to increase electricity invoices under an International Monetary Fund (IMF) agreement as part of the efforts to reduce unsustainable public debt in the areas of power and gas.

According to the lender, the energy liquidity conditions were acute, with accumulation of delayed and frequent power outages.

Delays – a form of public debt increased due to subsidies and unpaid accounts – were an important issue in negotiations between the IMF and Islamabad before agreement was reached.