Power Tariffs Reduced for DISCOs and K-Electric Consumers

ectricity prices for customers of state-owned distribution companies (DISCOs) and K-Electric have been lowered, offering relief amid ongoing economic pressures.

According to an official notification, the per-unit price has been reduced by Rs1.22 for DISCOs and Rs1.23 for K-Electric consumers under the monthly fuel price adjustment (FCA) mechanism. The revised rates, based on December’s FCA for DISCOs and November’s for K-Electric, will be reflected in February’s bills.

During a regulatory hearing led by the National Electric Power Regulatory Authority (NEPRA) chairman, the power division revealed that electricity firms had sought Rs52.12 billion in consumer relief under quarterly adjustments. Officials attributed the lower tariffs to a 7 per cent rise in industrial electricity usage in December and cost savings from terminating contracts with five thermal power plants.

Other contributing factors include a stable exchange rate and loan restructuring for the K-2 and K-3 nuclear power plants. However, financial strain persists due to the circular debt burden. The Central Power Purchasing Agency (CPPA) reported that interest payments on circular debt alone are adding Rs2.83 per unit to electricity costs, with total circular debt reaching Rs2,384 billion.

While the Neelum-Jhelum hydropower plant’s continued non-operation also played a role in financial adjustments, NEPRA has completed hearings on quarterly adjustments, with a formal decision expected soon.

The revised tariffs, covering the period from October to December 2024, will apply to all consumers, including K-Electric customers.