The Central Power Purchasing Agency (CPPA) requested a reduction of Rs 1.69 per unit in Pakistan’s electricity tariff under the Fuel Cost Adjustment (FCA) for the month of July.
The National Electric Power Regulatory Authority (NEPRA) is scheduled to review this petition during a public hearing on August 28. If approved, this adjustment could provide relief to consumers throughout Pakistan, including those in Karachi.
The CPPA reported that July saw 14.123 billion units of electricity generated, with 13.666 billion units supplied to distribution companies at a cost of Rs8.18 per unit. The proposed tariff cut follows the Economic Coordination Committee’s (ECC) approval of a uniform FCA application, ensuring K-Electric consumers also benefit, aligning with the federal government’s tariff rationalisation policy.
NEPRA has already approved a Rs1.88 per unit reduction under the quarterly tariff adjustment for the fourth quarter of FY 2024-25, resulting in a Rs55.87 billion refund for consumers from August to October 2025. This adjustment, driven by reduced capacity charges and increased industrial electricity sales, will apply to all consumer categories of XWDISCOs and K-Electric upon federal government approval.
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The proposed FCA reduction reflects Pakistan’s efforts to ease financial burdens amid economic reforms, including a $7 billion IMF bailout. If approved, the tariff cut could lower electricity bills, supporting households and businesses, particularly in flood-affected areas like Karachi, where infrastructure challenges persist.
NEPRA’s August 28 hearing will determine the final FCA adjustment. Consumers are advised to monitor updates via NEPRA’s website or the NDMA Disaster Alert App for related flood safety measures. The tariff reductions signal progress in stabilising Pakistan’s power sector, with potential for further relief.
