The National Regulatory Authority of Electric Power (NEPRA) has announced a reduction of RS1.78 per unit in electricity rates for consumers throughout the country, including Karachi, under the fuel cost adjustment mechanism (FCA) for July 2025.
According to a notification issued on Tuesday, the adjustment will be reflected in the electricity invoices for September, providing temporary relief to millions of consumers in the midst of the growing inflation and energy costs. “Relief is based on the variation in fuel costs for July and will be reflected in electricity bills for September,” he said.
The regulator data showed that the real national average cost for July was placed at RS8.0903 per kilowatt-Hora (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 transmitted to consumers.
The fees cut will be applied to all categories of consumers attended by K-Electric (KE) and the Ex-Wapda distribution companies, with the exception of life line consumers, protected residential users, electric vehicle load stations and prepaid meters users in fixed fees plans. “Consumers will see this relief in their September invoices, calculated according to their use of July electricity,” added the notification.
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NEPRA has ordered all distribution companies that clearly detail the adjustment of the FCA in consumer invoices. In cases where September invoices have already been issued, relief will be reflected in the following billing cycle.
The FCA mechanism is part of the monthly nepring routine rate adjustment process designed to align electricity prices with real fuel costs incurred during energy generation. “By implementing this FCA, KE and other distribution companies, they must comply with any relevant judicial orders,” the regulator warned.
