The National Electric Power Regulatory Authority (NEPRA) has directed state-owned distribution companies (DISCOs) and K-Electric to refund Rs. 1.23/unit in electricity bills to consumers in their bills for February 2025.
For DISCOs, the refund is based on fuel charges adjustment (FCA) for December 2024. For K-Electric, the refund applies to the FCA for November 2024. The decision was taken on a representation of KE, which had initially requested a FCA refund of Rs. 4.98/unit for November 2024.
Fuel charge adjustments are incurred by utilities due to global variations in prices of fuel used to generate electricity, and the changes in generation mix. These costs are reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from negative FCA in their bills when global fuel prices decrease. NEPRA determines the final rate charged to consumers, and it is notified by the federal government.
The refunds will apply to all consumer categories except lifeline consumers, domestic users consuming up to 300 units, electric vehicle charging stations, prepaid electricity users and agricultural consumers of all DISCOs. Domestic consumers with time-of-use meters, regardless of consumption levels, will also benefit.
If bills for February 2025 are issued prior to NEPRA’s notification, the refunds would be adjusted in the following month’s bills.