ISLAMABAD: Pakistan’s National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs for state-run distribution companies (DISCOs) and K-Electric (KE) consumers, providing relief to inflation-hit households.
This price reduction stems from the monthly fuel price adjustment. For December 2024, Discos’ tariffs have been reduced by Rs1.22 per unit, while K-Electric consumers will get a Rs1.23 per unit reduction for November 2024.
These adjustments will come in electricity bills for February 2025, bringing some relief to inflation-hit consumers grappling with skyrocketing electricity tariffs.
According to NEPRA, the reduction will apply to most consumer categories, excluding lifeline customers, domestic users consuming up to 300 units, electric vehicle charging stations, prepaid customers, and agricultural connections.
NEPRA also confirmed that the adjustment will be effective for domestic users with Time of Use (ToU) metres, regardless of their consumption levels.
The Fuel Charges Adjustment (FCA) revises electricity tariffs according to changes in fuel costs. When fuel prices drop, bills decrease, while higher costs lead to an increase in charges. NEPRA has also instructed Discos to adhere to court orders in applying the adjustment.
In recent years, Pakistan has been forced to increase its electricity tariffs under an International Monetary Fund (IMF) agreement to reduce unsustainable public debt in the power and gas sectors.
Meanwhile, Prime Minister Shehbaz Sharif stated on Wednesday that the IMF had indicated that it would not oppose a reduction in electricity prices.
“The global lender’s chief has assured that Pakistan’s plan for lowering power tariffs will be given due consideration,” the premier said while sharing details of his recent visit to Dubai with a federal cabinet meeting.
