The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity prices for consumers across the country under the monthly fuel charge adjustment (FCA), official notifications issued on Thursday stated.

Power tariffs for K-Electric (KE) consumers will see a cut of Rs3 per unit in their bills, while for the rest of the country, they have been slashed by Rs2.12 per unit.

According to the notifications issued by the power sector regulator, the relief will be reflected in electricity bills for March.

The price reduction for K-Electric applies to the December 2024 adjustment, while the reduction for other parts of the country is based on the January 2025 adjustment.

Unaffordable tariffs have stirred social unrest and shuttered industries in the $350 billion economy, which has contracted twice in recent years as inflation hit record highs.

This FCA reduction applies to most categories, except for lifeline consumers, domestic consumers using up to 300 units, electric vehicle charging stations, prepaid customers, and agricultural connections.

Nepra also confirmed that the adjustment will be effective for domestic users with Time of Use (ToU) metres, regardless of their consumption levels.

The FCA revises electricity tariffs based on fuel cost fluctuations. Lower fuel prices reduce bills, while higher costs raise them. Nepra has also directed Discos to comply with court orders on the FCA implementation.

In recent years, Pakistan has been forced to increase its electricity tariffs under an International Monetary Fund (IMF) deal as part of efforts to reduce unsustainable public debt in the power and gas sectors.

According to the lender, liquidity conditions in the power sector were acute, with a buildup of arrears and frequent power outages.

The arrears — a form of public debt that builds up due to subsidies and unpaid bills — were a major issue in the negotiations between the IMF and Islamabad before a deal was reached.