In welcome news for electricity consumers across Pakistan — including Karachi — the Central Power Purchasing Agency (CPPA) has filed a request with the National Electric Power Regulatory Authority (NEPRA) seeking a reduction of 37 paisa per unit in power tariffs under the monthly fuel cost adjustment (FCA) mechanism for September 2025.

According to official sources, NEPRA will hold a public hearing on October 29 to review and decide on the CPPA’s application. If approved, the reduction will likely be reflected in upcoming electricity bills for all distribution companies (DISCOs) operating under NEPRA’s jurisdiction.

The CPPA, in its petition, cited lower fuel costs during September compared to the previous month as the key reason for the proposed tariff cut. The adjustment, if sanctioned, would offer minor but much-needed relief to consumers facing sustained inflation and high energy prices.

Currently, power consumers are being billed based on the August fuel adjustment, under which the tariff had been increased by eight paisa per unit. The latest petition marks a reversal of that increase, aligning with lower global oil and LNG prices that have reduced power generation costs.

The Fuel Cost Adjustment (FCA) is a regular monthly mechanism under which NEPRA adjusts power tariffs based on fluctuations in the cost of fuels used for electricity generation. These adjustments ensure that changes in fuel prices are passed on to consumers in a transparent and timely manner.

If NEPRA approves the proposed reduction, it will apply to all consumer categories, except lifeline and K-Electric consumers, unless separate determinations are issued for the latter.

Energy experts note that even a modest tariff reduction could provide relief to millions of households and businesses burdened by high utility costs. However, they caution that seasonal variations in global fuel prices and exchange rate fluctuations continue to impact Pakistan’s power sector stability.

K-Electric consumers are also expected to benefit from a parallel hearing for Karachi’s power utility, where the impact of September’s fuel cost changes will be assessed separately.

The NEPRA hearing on October 29 will feature input from consumer representatives, energy sector analysts, and officials from the CPPA and DISCOs. A final determination is expected shortly thereafter.

If approved, the reduction could slightly ease the financial strain on consumers ahead of the winter season, when power usage patterns typically shift but bills remain high due to fixed charges and taxes.