Government Announces Drop in Electricity Prices to Rs 0.01 Per Unit

KARACHI: The federal government has granted customers a small reduction of Rs. 0.01 per unit in electricity rates in accordance with the Fuel Cost Adjustment (FCA) mechanism. 

The FCA will be applied to customers’ future bills. NEPRA has issued a notification to reflect the adjustment following a review of the fuel costs used for power generation.

Although the reduction is very small, it comes as a token relief for millions of electricity users who are struggling with high inflation and rising utility bills. The change applies to all distribution companies (DISCOs) across Pakistan, excluding some protected categories in certain cases.

Fuel price adjustments are made every month based on the actual cost of fuel used to produce electricity compared to the reference price. Lower global oil and coal prices, along with better use of cheaper hydel and nuclear power, sometimes help reduce the overall cost. However, experts note that such a tiny cut of just one paisa will not make a big difference in monthly bills for most households.

The Power Division says the government continues to work on larger relief measures. Bigger reductions in base tariffs and quarterly adjustments are under discussion for the next financial year.