In a significant relief for electricity consumers across Pakistan, the National Electric Power Regulatory Authority (NEPRA) has issued a directive for a substantial refund on power bills. The regulator has ordered all ex-Wapda distribution companies (Discos) and K-Electric to pass on a reduction of Re0.9326 per unit to their consumers. This refund is on account of monthly fuel charges adjustments (FCA) for the month of November 2025.
Details of the NEPRA Decision
The order came after a review of a petition filed by the Central Power Purchasing Agency (CPPA-G) on behalf of the Discos and K-Electric. The CPPA-G had initially sought a lower refund of Re0.7182 per unit. However, after incorporating several adjustments, NEPRA conducted its own assessment and determined that a higher, national average uniform decrease was justified.
The core reason for the refund is the difference between the projected and actual cost of power generation. For November 2025, the reference fuel charges were set at Rs6.8803 per unit. The actual cost of power generation, however, averaged a lower Rs6.1621 per unit, creating a surplus that must now be returned to consumers.
In a key development, NEPRA's decision explicitly states that this fuel charges adjustment will also apply to consumers of K-Electric. This move is in light of the federal government's policy guidelines for the application of uniform FCAs across the board, ensuring parity between consumers of Discos and KE.
Who Will Benefit and When?
The negative FCA, or refund, will be applicable to a wide range of consumer categories. However, there are important exceptions. The benefit will not be extended to the following groups:
- Lifeline consumers
- Protected consumers
- Electric Vehicle Charging Stations (EVCS)
- Pre-paid electricity consumers of all categories who have opted for the pre-paid tariff
For all other domestic and commercial consumers of both Discos and K-Electric, the adjustment will be reflected in their electricity bills. Consumers should note that the adjustment for November 2025 will appear in the billing month of January 2026.
Implications for the Power Sector and Consumers
This directive from NEPRA underscores the regulator's role in ensuring that fluctuations in fuel costs are fairly passed through to consumers. When the actual cost of generation is lower than estimates, consumers are entitled to a refund, which this decision enforces.
The inclusion of K-Electric under the same adjustment mechanism is a notable step towards a more standardized national tariff policy. It eliminates a long-standing point of disparity for electricity users in Karachi, bringing them under the same regulatory mechanism for fuel cost adjustments as the rest of the country.
For the average household, the per-unit refund, while seemingly small, will translate into a tangible reduction in their total monthly bill, depending on their consumption. This decision provides some financial relief and demonstrates the operational function of the FCA mechanism.
