The National Electric Power Regulatory Authority (NEPRA) has directed power distribution companies (DISCOs) and K-Electric to refund Rs. 1.23 per unit to consumers in their February 2025 electricity bills. The refund is based on fuel charges adjustments (FCA) for December 2024 in the case of DISCOs and November 2024 for K-Electric.
K-Electric had initially proposed a negative FCA of Rs. 4.98 per unit, but NEPRA revised it to negative Rs. 5.0 per unit, amounting to Rs. 7.21 billion. However, Rs. 5.44 billion remains under review for various cost components. NEPRA has also hinted at further tariff reductions in the coming months due to stable fuel costs and smaller capacity payments.
The refund will apply to all consumer categories except lifeline users, domestic consumers using up to 300 units, prepaid customers, agricultural consumers, and electric vehicle charging stations. Time-of-use (ToU) domestic consumers will be eligible for the adjustment. If February bills are issued before NEPRA’s notification, the refund will be carried forward to March bills.
Additionally, NEPRA has indicated that DISCOs, including K-Electric, may be required to refund an additional Rs. 52 billion under the second quarterly adjustment for October-December 2024-25. This adjustment is due to a Rs. 50.66 billion reduction in capacity charges, following the termination of five thermal power plant contracts and the suspension of the Neelum-Jhelum hydropower project. A stable exchange rate and falling interest rates have also contributed to the reduction.
