Electricity prices lashes by Rs1.22/unit across Pakistan

Electricity tariffs for consumers of state-owned distribution companies (DISCOs) and K-Electric have been lowered, offering significant relief to users.

The price per unit has been decreased by Rs1.22 for DISCOs and Rs1.23 for K-Electric customers.

This reduction is implemented through the monthly fuel price adjustment (FCA) mechanism. As per the official announcement, the price reduction for DISCOs pertains to December’s FCA, while K-Electric’s adjustment is based on November’s FCA.

The updated rates will be reflected in the electricity bills for February.

Previously, during a regulatory hearing chaired by the National Electric Power Regulatory Authority (NEPRA), the power division revealed that electricity companies had requested Rs52.12 billion in consumer relief through quarterly adjustments.

Read more: Kasur police book dead man for stealing electricity

Officials noted that a 7 percent rise in industrial consumption in December, along with cost savings from the termination of contracts for five thermal power plants, contributed to the price decrease.

They also pointed out that stable exchange rates and savings from the loan restructuring of the K-2 and K-3 nuclear plants were significant factors in the reduction of electricity rates.

Additionally, the non-operational status of the Neelum-Jhelum hydropower plant contributed to the financial adjustments.

Nevertheless, it was also disclosed that the ongoing circular debt issue continues to impact consumers.