QTA & MTA: Nepra cuts tariffs for Discos and KE
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday announced a reduction in electricity tariffs for both Distribution Companies (Discos) and K-Electric under its quarterly and monthly adjustment mechanisms.
For the third quarter of FY 2024-25, Nepra approved a tariff reduction of Rs 1.55 per unit under the Quarterly Tariff Adjustment (QTA) mechanism for all Discos and KE. Additionally, under the Fuel Charges Adjustment (FCA) mechanism, a Rs 3.64 per unit reduction was approved for KE for February 2025 and a Rs 0.29 per unit decrease for Discos for March 2025.
Nepra issued three separate notifications reflecting these determinations. KE consumers will benefit from a total relief of Rs 5.19 per unit in May 2025, combining both QTA and FCA adjustments. Further reductions for June and July will depend on future FCA data.
Discos and KE: Nepra approves Rs1.71 tariff cut on PD's motion
Discos consumers will see a combined relief of Rs 1.82 per unit in their May 2025 electricity bills. However, the joint impact of QTA and FCA in the months of June and July will be determined after the Central Power Purchasing Agency – Guarantee (CPPA-G) submits the relevant data.
According to the QTA notification, Nepra has approved negative quarterly adjustments totaling Rs 52.603 billion for the third quarter of FY 2024-25. This adjustment will be spread over three months—May to July 2025—at a uniform rate of negative Rs 1.5538/kWh, applicable to all consumer categories except lifeline and prepaid consumers.
Regarding KE's FCA, Nepra has approved a provisional negative FCA of Rs 3.6396/kWh, subject to revision once the Multi-Year Tariff (MYT) for FY 2024-30 is finalized. Any differences arising from the MYT determination will be adjusted in future periods. This reduction applies to all consumer categories, except lifeline consumers, protected domestic consumers, Electric Vehicle Charging Stations (EVCS), and prepaid consumers.
This adjustment will be reflected separately on consumer bills based on units consumed during the relevant month. If any May 2025 bills were issued prior to the notification, the relief will be incorporated in subsequent billing cycles.
As for Discos, Nepra has determined a national average uniform reduction of Rs 0.2883/kWh in the tariff for March 2025 under the FCA mechanism. This reduction, applicable to all consumer categories except lifeline, protected, EVCS, and prepaid consumers, will be reflected in May 2025 bills based on March consumption. Similar to KE, any early billing will be adjusted in future months.
Copyright Business Recorder, 2025
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