Khartool-e-Sijing (NEPRA) declares a decreased power tariff of Rs4 per unit for K-Electric under the April 2025 FCA agreement.

Khartool-e-Sijing (NEPRA) declares a decreased power tariff of Rs4 per unit for K-Electric under the April 2025 FCA agreement.

In a recent development, the National Electric Power Regulatory Authority (NEPRA) has made changes to the fuel charges for K-Electric (KE), providing a reduction in fuel charges for most customers.

## Changes in Fuel Charges for KE

NEPRA has approved a reduction of PKR 4.0349 per kWh in the fuel charges for KE, which is less than the requested reduction of PKR 4.69 per unit. This reduced FCA will be applied to consumer bills in July 2025. However, it's important to note that this reduction will not apply to lifeline consumers, domestic protected consumers, electric vehicle charging stations (EVCS), and prepaid electricity consumers who opted for prepaid tariffs.

## Impact on Consumers

The reduction in fuel charges will result in lower electricity bills for most consumers, providing relief by reducing the cost per unit of electricity consumed. Unfortunately, consumers in the excluded categories will not benefit from this reduction.

## NEPRA's Decision Basis

The decision reflects adjustments due to fluctuations in global fuel prices and changes in the generation mix. To avoid burdening consumers later, NEPRA has retained PKR 0.8 billion related to partial load, open cycle, degradation curves, and start-up costs.

Overall, NEPRA's decision aims to balance financial pressures on utilities with consumer relief, ensuring that the cost adjustments are fair and reflective of current market conditions.

It's currently unclear if there have been any changes in K-Electric's pending claims due to NEPRA's retention of Rs0.8 billion for adjustments, and if this relief is a one-time measure or a recurring adjustment.

Customers will benefit from this reduction in their July 2025 bills, offering some much-needed relief in the face of fluctuating fuel prices. It's hoped that this decision will set a positive precedent for future FCA determinations.

The reduction in fuel charges for K-Electric, as approved by NEPRA, will lead to lower electricity bills for most consumers in the financial sector. The energy sector will indirectly benefit from this decision due to the reduced cost per unit of electricity consumed.

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