Nepra has approved a reduction in the price of electricity by Rs 1.75 per unit.

The authority has completed the hearing on the application of CPPA for quarterly adjustment, Nepra Authority will issue a decision after further reviewing the data.

The reasons for making electricity cheaper for the fourth quarter of the financial year 2024-25 were reviewed, the reduction in electricity prices will provide relief to consumers of more than Rs 53 billion 39 crore.

The quarterly adjustment will also be applicable to government-owned discos including K-Electric, the authority was informed that the circular debt has been reduced by Rs 780 billion.

Officials said that the circular debt has been reduced from Rs 2300 billion to Rs 1600 billion, the circular debt has been reduced by Rs 200 billion due to the improved performance of electricity distribution companies, and the closure of the Neelum-Jhelum Hydropower Plant has resulted in a difference of Rs 18 billion.

According to officials, transmission and distribution losses have also decreased, the electricity consumption of all DISCOs has increased by an average of 31 percent, only the electricity sales of Quetta Electric Supply Company have decreased.

The authority raised questions about the increase in the growth of the electricity industry, none of the CEOs of DISCOs could give a satisfactory answer to the authority.

Officials said that the government is working on reforms in direct subsidy and cross subsidy, no separate surcharge will be imposed for the repayment of Rs 1275 billion loan from banks, an inquiry has been sent to the Prime Minister against electricity distribution companies on the issue of overbilling.

According to officials, action has been taken against several officers of LESCO, and discussions are underway with the provinces to abolish electricity duty.

Power Division officials said that two provinces have not responded yet.