Nepring cuts the power rate by RS1.89 per unit


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Islamabad:

The National Regulatory Authority of Electric Power (NEPRA) on Thursday approved a reduction of RS1.89 per unit at the Energy Rate throughout the country under the quarterly adjustment positions of April-June of 2025.

The decision has been sent to the Federal Government for its implementation. Reduced rates will be applied to all energy distribution companies (disc), including K-Electric (KE).

The tariff cut will be applicable for a period of three months between August to October 2025 and is expected to provide a cumulative relief of RS55.87 billion to consumers. However, Nepra clarified that rate reduction will not apply to Lifeline and Prepaid electricity consumers.

A notification dated August 7 said that Nepra “decided to allow the application of instant quarterly adjustments to K-Electric consumers, with the same applicability period.” Consequently, instant quarterly adjustment of RS1.8881/kWh (per hour per kilowatt) must also be loaded with K-Electric consumers, except the life line of life and preparation consumers, to recover in a period per kilowatt) that will be charged by consumers of K-Life consumers, except the life of life and consumers Preparances, which will recover in a period per kilowatt) that will be charged consumers of K-Life consumers, except the line of life and prepaid consumers, which will recover in a period per kilowatt of three months). [from] August 2025 to October 2025 “.

The decision follows the requests of the distribution companies for a downward review in tariffs as part of the quarterly adjustment. Nepra held a public hearing on the matter on August 4.

Quarterly tariff adjustments are used to reconcile costs related to energy generation and capacity charges, separated from monthly fuel price settings.

Meanwhile, Nepra also notified a negative adjustment of the fuel cost (FCA) of RS0.78 per unit for consumers of all discos, except that in their invoices for August.

According to a separate nepera notification of August 7, the authority decided an FCA of RS0.78 for the month of June 2025 based on variations in fuel charges in the approved album rates.

Nepra decided that the FCA “will be applicable to all consumer categories, except life line consumers, protected consumers, electric vehicle load stations (EVC) and prepaid electricity consumers of all categories that opted for the prepaid rate,” according to notification.

The notification declared that the albums would reflect the June FCA in the Billing Month of August 2025, which would be shown separately in the invoices of consumers based on the units that were billed in June.

“In the event that an August 2025 bill is issued before notification of this decision, the same can be applied in [the] Posterior month, “Nepra added.

“While the fuel adjustment, the xwdiscos in question will be maintained in the view and strictly comply with the orders of the courts, despite this order.”

In another notification, Nepra responded to a application from the Central Energy Purchase Agency (CPPA-G) that seeks a monthly FCA for June, finding that, according to the information provided, the real cost of pool fuel was RS.7.68 per kilowatt hour (kWh) against the reference fuel cost component of RS.8.3341 per kWh

“Real fuel charges, as claimed by CPPA, by June 2025 decreased by RS.0.65 per kWh compared to reference fuel charges,” said the notification.

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