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NEPRA cuts power tariff by Rs1.98, raises FCA by Rs1.19

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has announced separate adjustments to electricity tariffs, introducing both an increase and a reduction in power rates under different pricing mechanisms that will affect consumers in the coming months.

According to official notifications issued by the regulator, electricity prices have been raised by Rs1.19 per unit under the monthly Fuel Cost Adjustment (FCA) for April 2026. The increase will be applicable to most electricity consumers across the country and will be reflected in power bills issued for June.

The fuel cost adjustment is a routine mechanism through which variations in electricity generation costs, particularly those linked to fuel prices, are passed on to consumers. When generation costs rise, consumers are required to bear the additional burden, while lower costs can result in refunds or reductions.

However, NEPRA has exempted several categories of consumers from the latest FCA increase. These include lifeline consumers, electric vehicle charging stations and prepaid electricity users, who will not be charged the additional amount.

In a separate development, the power regulator has approved a reduction of Rs1.98 per unit under the first quarterly tariff adjustment of calendar year 2026. The relief will remain in effect for a period of three months and is expected to provide substantial financial relief to electricity users.

According to estimates, the quarterly adjustment will translate into savings of more than Rs67 billion for consumers nationwide. The reduction will be passed on through electricity bills issued during June, July and August.

The quarterly tariff adjustment is part of a regulatory mechanism that allows power rates to be revised periodically based on changes in factors such as capacity payments, transmission costs, distribution expenses and overall power sector financial performance.

Despite the broad-based relief, certain consumer categories will not benefit from the reduction. Lifeline consumers, users benefiting from incremental consumption packages and prepaid electricity customers have been excluded from the quarterly adjustment relief.

The latest notifications come at a time when electricity consumers are closely monitoring power costs amid rising temperatures and increased energy consumption during the summer season. While the quarterly adjustment is expected to ease some of the financial pressure on households and businesses, the fuel cost increase will partially offset the benefit in June bills.

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