Karachi, April 5, 2025 – The National Electric Power Regulatory Authority (Nepra) has approved a significant relief for K-Electric (KE) consumers in the form of a reduction in the electricity tariff under the monthly Fuel Charges Adjustment (FCA) mechanism.
According to Nepra’s latest decision, KE customers will see a reduction of Rs 3.02 per kilowatt-hour (kWh) in their electricity bills for April 2025, based on the FCA for January 2025.
This relief comes as part of Nepra’s continued effort to ensure that fuel cost variations are transparently adjusted without imposing undue burden on consumers. In a related move, Nepra has also provisionally withheld Rs 2 billion related to adjustments for partial load operations, open cycle inefficiencies, degradation curves, and start-up costs. These deductions are being made in accordance with Nepra’s earlier determination on Generation Tariffs, effective from the control period starting July 2023.
These adjustments will be reconciled with KE’s pending claims in future billing cycles, thereby helping to avoid a sudden tariff spike later on. Nepra emphasized that such steps are being taken to protect consumers and ensure a balanced and fair recovery of generation costs without compromising service quality.
Fuel Charges Adjustments are a regular feature in power sector billing, accounting for variations in global fuel prices and shifts in the power generation mix. When international fuel prices fall, as they did in January 2025, consumers benefit through negative FCAs. However, such adjustments only take effect after thorough review and approval by Nepra, which scrutinizes all cost elements submitted by utilities like K-Electric.
The Nepra decision also clarified that this specific FCA relief will not be applicable to certain customer categories. Exempt groups include lifeline consumers, domestic protected customers, electric vehicle charging stations (EVCS), and all types of prepaid electricity users who have opted into the prepaid tariff model.
This latest move by Nepra reflects its broader regulatory mandate to safeguard public interest while ensuring utilities recover only legitimate costs. The relief in the April 2025 bills will be a welcome change for many Karachi residents grappling with inflation and rising utility expenses.