ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a fuel cost adjustment (FCA) relief of 93 paise per unit for electricity consumers across the country, including K-Electric. The refund will be passed on in electricity bills for January 2026 against power consumption in November 2025.
In its notification issued on Thursday, Nepra said it had determined a negative FCA of Rs0.9326 per kilowatt-hour (kWh) for November. The relief will apply to all consumer categories of distribution companies, including K-Electric, except lifeline consumers, protected consumers, electric vehicle charging stations (EVCS), and prepaid consumers who have opted for prepaid tariffs.
Nepra directed all distribution companies to reflect the November FCA in the billing month of January 2026.
On the same day, the federal government also filed a petition seeking the implementation of a uniform national average tariff, based on multiple tariff determinations issued by the regulator. The proposal envisages a reduction of around 62 paise per unit from January 1, 2026, for a period of six months. Nepra has scheduled a public hearing on January 12 to consider revised base tariffs for all distribution companies, including K-Electric.
According to Nepra, the national average tariff has been determined at Rs33.38 per unit, compared to Rs34 per unit in the first half of the current fiscal year.
Earlier, the Central Power Purchasing Agency (CPPA), on behalf of distribution companies, had sought a negative FCA of 72 paise per unit, citing a significant share of electricity generation from cheaper domestic and zero-cost fuel sources. The CPPA had estimated a refund of Rs5.6 billion to consumers.
However, after verifying the data, Nepra worked out a higher refund of about 93 paise per unit, amounting to approximately Rs7.3 billion.
The CPPA reported that power consumption in November was around 1.25 per cent higher than the same month last year but nearly 18 per cent lower than in October 2025. During the month, 7,813 gigawatt-hours (GWh) of electricity were delivered to distribution companies.
Power producers said the average fuel cost stood at Rs6.16 per unit in November, significantly lower than 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 data, around 8,050GWh of electricity was generated in November at an estimated fuel cost of Rs50.1 billion, translating into an average of Rs6.22 per unit. Of this, 7,813GWh was supplied to distribution companies at a cost of Rs48 billion, resulting in savings to be passed on to consumers through the FCA mechanism.
Story by Khaleeq Kiani