Electricity Users to Get A Relief in February Bills

The National Electric Power Regulatory Authority (NEPRA) has directed power distribution companies (DISCOs) and K-Electric to refund Rs. 1.23 per unit in the February 2025 electricity bills. The discount will be based on fuel charges for December 2024 in DISCOs’ case and for November 2024 in K-Electric’s case. Further tariff reductions might happen in the coming months due to smaller capacity payments and stable fuel costs. K-Electric had initially sought a negative fuel charges adjustment (FCA) of Rs. 4.98 per unit, but NEPRA revised it to negative Rs. 5.0 per unit (Rs. 7.21 billion). Rs. 5.44 billion remains under scrutiny for various cost components. The refund will benefit 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 also receive the adjustment. If February bills are issued before NEPRA’s notification, the refund will be carried forward to March bills. Also, 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 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 a fair share.