ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.75 per unit in electricity prices under the quarterly adjustment for the fourth quarter of the fiscal year 2024-25.
NEPRA concluded the hearing on the Central Power Purchasing Agency’s (CPPA) request and will issue a final decision after further reviewing the data.
The reduction in electricity rates is expected to provide over Rs53.39 billion in relief to consumers. The quarterly adjustment will apply to all government distribution companies (DISCOs), including K-Electric.
Officials informed that the circular debt has come down by Rs780 billion, reducing the total from Rs2,300 billion to Rs1,600 billion. This decrease includes Rs200 billion saved due to improved performance of distribution companies and Rs18 billion due to the closure of the Neelum-Jhelum hydropower plant.
Transmission and distribution losses have also dropped, and overall electricity consumption by all DISCOs has increased by an average of 31 percent. However, Quetta Electric Supply Company (QESCO) has recorded a decline in sales.
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During the hearing, the authority raised questions regarding the growth in industrial electricity consumption, but no CEO from the distribution companies could provide satisfactory answers.
Officials added that the government is working on reforms in direct and cross subsidies. A loan of Rs1,275 billion has been taken from banks, and no separate surcharge will be applied for repayment.
Inquiry reports on overbilling by power distribution companies have been sent to the Prime Minister, while several LESCO officers are already facing action. Discussions are also underway with provincial governments on ending electricity duty, though two provinces have yet to respond.
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