In a significant relief for electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has announced a reduction in power tariffs under the monthly Fuel Cost Adjustment (FCA) mechanism. Consumers of all Power Distribution Companies (DISCOs) and K-Electric will benefit from a decrease of 75 paisa and 49 paisa per unit, respectively, for the months of November and October 2024.
NEPRA’s Tariff Reduction Decision
The decision comes after petitions from the Central Power Purchasing Agency (CPPA) and K-Electric, seeking reductions of 63 paisa and 27 paisa per unit for their respective adjustments. However, NEPRA approved a greater reduction, ensuring added relief to consumers.
Applicability of the Reduction
The tariff reduction is applicable to all consumer categories except:
- Lifeline consumers.
- Domestic consumers using up to 300 units.
- Electric Vehicle Charging Stations (EVCS).
- Prepaid electricity consumers.
- Agricultural consumers under XWDISCOs.
Notably, domestic consumers with Time of Use (ToU) meters will benefit from the negative adjustment regardless of their consumption levels.
Effective Implementation
For consumers of DISCOs, the November 2024 FCA adjustment will reflect in their January 2025 billing.
What This Means for Consumers
This reduction in tariffs is a welcome move, offering relief amidst rising energy costs. By addressing fuel cost fluctuations through the FCA mechanism, NEPRA continues to regulate and optimize the cost burden on electricity consumers.
NEPRA’s proactive approach highlights its commitment to ensuring transparency and fairness in energy pricing. As adjustments take effect, consumers can expect reduced electricity bills, a much-needed reprieve for households and businesses alike.