Nepra okays 93-paisa per unit fuel cost refund

Published January 9, 2026
In this file photo, the Natio­nal Electric Power Regula­tory Authority (Nepra) logo is visible on the side of the building. — APP/File
In this file photo, the Natio­nal Electric Power Regula­tory Authority (Nepra) logo is visible on the side of the building. — APP/File

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday notified a fuel cost adjustment (FCA) relief of about 93 paise per unit for all distribution companies, including K-Electric, to be passed on to consumers in January bills for electricity consumed in November.

On the same day, the government filed a petition seeking the application of a uniform national average tariff based on a series of determinations issued by the power regulator, envisaging around 62 paise per unit lower rates from Jan 1, 2026, for the next six months.

Nepra fixed Jan 12 for a public hearing ahead of notification of revised base tariffs for all distribution companies, including K-Electric. It said the national average tariff had been determined at Rs33.38 per unit compared to Rs34 per unit in the first half of the current fiscal year.

In the FCA notification, Nepra said it had determined a negative fuel cost adjustment for November 2025 of Rs0.9326 per kilowatt-hour (kWh). The adjustment will apply to all consumer categories of K-Electric and other distribution companies except lifeline consumers, protected consumers, electric vehicle charging stations (EVCS) and prepaid consumers of all categories who have opted for prepaid tariffs.

The regulator said distribution companies would reflect the November FCA in the billing month of January 2026.

Govt files application for 62-paisa cut in uniform tariff

The Central Power Purchasing Agency (CPPA), on behalf of the Discos, had sought a 72 paise per unit negative FCA to consumers across the country in January bills despite almost 86 per cent generation from cheaper domestic, predominantly zero-cost fuel sources. The agency had worked out a Rs5.6bn FCA refund to consumers.

Nepra, after verifying data, worked out a reduction of 93 paise per unit, or about Rs7.3bn refund. The CPPA, which filed the petition for negative FCA for November usage, said power consumption was around 1.25pc higher than in the same month last year and about 18pc lower than the previous month, ie October 2025.

It said 7,813 gigawatt-hours (GWh) were delivered to distribution companies in November.

The power companies said the average fuel cost came to Rs6.16 per unit in November, compared with Rs8.72 per unit in October and Rs7.23 per unit in November 2024. The reference fuel cost for November had been set at Rs6.88 per unit.

According to CPPA’s petition, about 8,050GWh of electricity was generated in November at an estimated fuel cost of Rs50.1bn (Rs6.22 per unit). Of this, 7,813GWh was delivered to distribution companies at a cost of Rs48bn (Rs6.16 per unit), leading to savings of 72 paise per unit to be refunded to the consumers.

Published in Dawn, January 9th, 2026

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