Nepra Reduces Power Tariff after FCA Review

Islamabad: For August, the National Electric Power Regulatory Authority (Nepra) has authorized a power tariff reduction of 86 paisa per unit under the monthly fuel cost adjustment mechanism (FCA).

A notification released on Thursday states that the Central Power Purchasing Agency (CPPA) has requested a 57 paisa per unit tariff reduction for the specified period.

On September 26, the regulatory body held a public hearing about the CPPA petition. Additionally, it stated that the regulator had cut FCA by 37 paisa per unit for July.

Customers would receive the alleviation for October bills. The FCA for August would be 49 paisa less than that for July.

Additionally, it stated that customers who had already received their electricity bills would receive reimbursement during November’s billing.

All customers would be eligible for the relief, except lifeline, prepayment, and electric vehicle charging stations. It would not apply to K-electric customers.

The News said earlier in October that when additional costs were imposed the month before, ex-Wapda distribution companies (XWDiscos) offered to reimburse customers Re0.7057 per unit on their November 2024 bills.

Also read: Talking points of Economic Survey 2023-24

To finalize the monthly fuel price adjustment (FCA) for September, the CPPA petitioned the Nepra on behalf of these businesses.

This comes after five independent power providers (IPPs) canceled their contracts, prompting the current administration to target a power tariff drop of Rs 8–10 per unit.

Minister for Energy (Power Division) Awais Leghari had previously stated that they would lower the power tariff after consulting with generating companies, with the government anticipating that this would save the national exchequer Rs 411 billion.

The minister declared at a time when the middle and lower classes bear an unfair share of the burden of high power rates, which has fueled public outrage and undermined confidence in the government’s capacity to oversee the economy.

Central Power Purchasing Agency (CPPA)Fuel Cost Adjustments (FCA)Independent Power Providers (IPPs)Minister for Energy (Power Division) Awais LeghariNational Electric Power Regulatory Authority (Nepra)XWDiscos
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