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Electricity prices for consumers of state-owned distribution companies (DISCOs) and K-Electric have been reduced, providing much-needed relief.
The per-unit price has been cut by Rs1.22 for DISCOs and Rs1.23 for K-Electric consumers.
The reduction comes under the monthly fuel price adjustment (FCA) mechanism. According to the official notification, DISCOs’ price cut applies to December’s FCA, while K-Electric’s reduction is based on November’s FCA.
The revised tariffs will reflect in February’s electricity bills.
Earlier, during a regulatory hearing led by National Electric Power Regulatory Authority (NEPRA) chairman, the power division disclosed that electricity companies had sought Rs52.12 billion in consumer relief under quarterly adjustments.
Officials explained that the 7 per cent increase in industrial consumption in December, along with cost savings from contract terminations of five thermal power plants, contributed to the price reduction.
They further highlighted that key factors behind the lower electricity rates include stable exchange rates and savings from loan restructuring of K-2 and K-3 nuclear plants.
The Neelum-Jhelum hydropower plant remaining non-operational also played a role in financial adjustments.
However, it was also revealed that the circular debt burden continues to affect consumers.
The Central Power Purchasing Agency (CPPA) stated that interest payments on circular debt alone are adding Rs2.83 per unit to electricity costs, with the total circular debt now standing at Rs2,384 billion.
