Daily Times

The National Electric Power Regulatory Authority (NEPRA) has reduced electricity prices under the monthly Fuel Price Adjustment (FCA), making electricity cheaper for consumers.

According to reports, a reduction of 75 paisas per unit has been announced for consumers of government-owned DISCOs under the November FCA.

Additionally, a price reduction of 49 paisas per unit has been approved for K-Electric consumers under the October FCA.

Back in December 2024, Prime Minister of Pakistan Shehbaz Sharif directed a reduction in electricity prices for consumers and the immediate closure of outdated and inefficient power plants.

Meanwhile, the federal government is working on various options to reduce electricity tariffs, aiming to cut prices by up to Rs10 per unit, sources told Geo News on Tuesday.

According to the sources, the government’s first option involves negotiating with Independent Power Producers (IPPs) to pass on the benefits to the public.

By terminating agreements with five IPPs, the government is projected to save a total of Rs411 billion, with an annual saving of Rs70 billion.

Sources within the Ministry of Energy revealed that a tariff revision for eight bagasse-based power plants would save Rs238 billion, equating to an annual saving of Rs8.83 billion.

Additionally, the termination or modification of contracts with 16 more IPPs would result in a further benefit of Rs481 billion.

These savings will be passed on to consumers in the form of reduced electricity costs.

The sources further said that the federal government is also considering an extension of the Winter Electricity Relief Package, as well as proposals to reduce taxes on electricity bills.