The National Electric Power Regulatory Authority (NEPRA) is expected to reduce the power tariff by Rs2 per unit as part of the fuel cost adjustment (FCA) for January 2025. This reduction will provide much-needed relief to electricity consumers amid rising energy costs.
CPPA-G’s Petition for Tariff Reduction
The Central Power Purchasing Agency Guarantee Limited (CPPA-G) has formally submitted an application to NEPRA, proposing a refund of Rs2.32 per unit to power consumers. This request, filed on behalf of Ex-Wapda Distribution Companies (XWDiscos), aims to adjust the difference between the reference fuel cost and actual costs incurred in January 2025.
A public hearing regarding this tariff adjustment is scheduled for February 27, 2025, where NEPRA will assess and decide on the proposed reduction.
Electricity Production and Cost Analysis
According to the CPPA-G petition:
- Total electricity generated in January 2025: 7.8160 billion units.
- Reference fuel charges billed to consumers: Rs13.1 per unit.
- Actual fuel cost incurred: Rs10.78 per unit.
- Requested refund amount: Rs2.32 per unit, which CPPA-G suggests should be passed on to consumers through their electricity bills.
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Breakdown of Power Generation Sources (January 2025)
- 10.63% of electricity was generated through hydel sources.
- 15.56% was produced using local coal.
- 8.53% of electricity came from imported coal.
- 1.53% was generated using furnace oil.
- 13.11% of power was generated from local gas.
- 18.92% was derived from imported LNG.
- The highest contribution, 26.61%, came from nuclear power.
Potential Impact on Electricity Consumers
If approved, the Rs2 per unit reduction will lower electricity bills for millions of consumers, providing relief against high energy costs. This adjustment is particularly beneficial for domestic, commercial, and industrial consumers who have been facing increased electricity expenses due to fluctuating fuel prices.
K-Electric Also Proposes Tariff Reduction
In a separate development, K-Electric (KE) has filed a petition with NEPRA, requesting a Rs4.95 per unit reduction in power tariffs. The proposed refund comes after the utility charged higher per-unit electricity rates in December 2024.
Upcoming NEPRA Decision and Consumer Expectations
The final decision on the FCA-based relief will be made in the upcoming public hearing on February 27, 2025. If NEPRA approves the proposed reduction, consumers can expect to see a noticeable decrease in their electricity bills for the next billing cycle.
For further updates on electricity tariffs, fuel cost adjustments, and regulatory decisions, stay tuned to official NEPRA announcements and energy sector reports.