Uniform tariff reduced by Rs1.89 per unit; fuel cost adjustment down by Rs0.78 for August bills
The National Electric Power Regulatory Authority (Nepra) has announced a significant reduction in electricity tariffs, providing much-needed relief to consumers across the country. In a notification issued on August 7, the regulator confirmed a cut of Rs1.89 per unit in the uniform quarterly tariff for the August to October 2025 billing period.
The decision follows a review of power sector costs for the fourth quarter of the fiscal year 2024–25 (April–June). The reduction will be applied to all ex-Wapda distribution companies (XWDiscos) and K-Electric customers — with exceptions for lifeline, prepaid, and protected category consumers.
Quarterly Adjustment to Benefit Millions
Nepra’s notification clarified that this Rs1.8881 per kilowatt-hour (kWh) reduction will appear as a negative quarterly adjustment on electricity bills issued between August and October 2025. K-Electric consumers will also benefit from this tariff relief, aligning their treatment with that of XWDiscos customers.
“Distribution companies are required to implement this change in compliance with applicable court orders, even if bills for August have already been issued,” Nepra noted.
The move comes after a public hearing in which consumers and civil society representatives raised concerns over excessive billing and rising electricity costs, despite reports of surplus generation and lower fuel prices.
Rs0.78 Fuel Cost Adjustment for August Bills
In a separate notification, Nepra also approved a negative fuel cost adjustment (FCA) of Rs0.78 per unit for XWDiscos’ consumers (excluding K-Electric) for the month of June 2025, to be reflected in August 2025 bills.
The FCA applies to all consumers except:
- Lifeline users
- Protected residential users
- Prepaid consumers
- Electric Vehicle Charging Stations (EVCS)
This adjustment is based on actual fuel charges incurred during June, where the pool fuel cost was recorded at Rs7.68 per kWh, compared to the reference cost of Rs8.3341 per kWh, resulting in savings of Rs0.65 per unit.
Nepra has instructed all XWDiscos to clearly show the adjustment on bills and ensure strict adherence to court directives during implementation.
Refunds to Consumers from Capacity Savings
The reduction in the quarterly adjustment is primarily attributed to Rs53.4 billion in savings achieved through lower capacity payments during the April–June quarter. These savings will now be passed on to consumers over the next three months.
The tariff relief follows increasing public scrutiny of the power sector, with many demanding transparency and accountability in billing practices.
