NEPRA orders refunds totalling Rs1.888 per unit for electricity consumers
In a move that brings considerable relief to electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has mandated that all power distribution companies, including K-Electric, issue a refund of Rs1.888 per unit in consumer bills over the next three months—covering August to October 2025—as part of the fourth quarterly tariff adjustment for FY2024‑25.
NEPRA has also directed the ex‑Wapda distribution companies (Discos)—excluding K-Electric—to provide an additional refund of Rs0.777 per unit in August bills, reflecting a negative monthly fuel cost adjustment (FCA) for June 2025. These adjustments combined are expected to amount to approximately Rs55.87 billion in refunds, slightly exceeding the Rs53.39 billion initially proposed by the Discos.
The regulator has attributed this significant consumer relief to lower capacity charges billed by the Central Power Purchasing Agency‑Guaranteed (CPPA‑G). Key contributing factors include the termination of Independent Power Producer (IPP) contracts, the unavailability of the Neelum-Jhelum project, debt restructuring of nuclear plants (K‑2 and K‑3), and renegotiated agreements with IPPs.
NEPRA has raised concerns about potential overbilling and instructed Discos to provide a detailed comparison of industrial sales for April to June 2025 versus the same period in 2024, with special focus on captive consumers who migrated to the national grid. This data will be mandated in future tariff adjustment filings, enhancing transparency and accountability.
A NEPRA technical member’s note highlighted systemic challenges in the power sector, including Rs192 billion in losses due to frequent power outages at plants like Guddu‑16 and Neelum-Jhelum, Rs14 billion in transmission inefficiencies, and Rs41.2 billion in part load charges. The note underscored that without addressing such governance issues, reforms may fail to stabilize the sector.
The decision for these refunds comes as power sales surged by 46% during the April–June quarter, partly due to the return of 281 captive power consumers (representing 700–750 MW of load) to the national grid. Despite increased demand, NEPRA’s intervention ensures that billing remains fair and consumer‑friendly.
This regulatory action underscores NEPRA’s role in safeguarding consumer interests amid broader challenges in the energy sector. By enforcing substantial refunds and insisting on rigorous scrutiny of financial data from Discos and CPPA‑G, NEPRA is signaling a renewed focus on tariff rationalization, data-driven oversight, and improved sector governance
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