Govt to Announce Small Decrease in Electricity Prices Soon

Electricity prices are expected to decrease slightly both under the monthly fuel charges adjustment (FCA) for March and the quarterly adjustment for the third quarter of the 2024-25 financial year. According to the application submitted, electricity could become cheaper by 3 paisas per unit under the March monthly adjustment, while a more significant reduction of over Rs. 1 per unit has been sought under the quarterly adjustment. A total relief of Rs. 51.49 billion is proposed through the quarterly adjustment, including a request for a Rs. 47.12 billion reduction in capacity charges. The National Electric Power Regulatory Authority (NEPRA) will hold hearings on both the monthly and quarterly adjustment applications tomorrow. The application notes that 8.40 billion units of electricity were generated in March at an average cost of Rs. 9.22 per unit, compared to the reference cost of Rs. 9.25 per unit.