Islamabad 7 August: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.88 per unit in the electricity tariff, providing much-needed relief to consumers across Pakistan.
This adjustment, part of the quarterly tariff revision for the fiscal year 2024-25, is set to ease the financial burden on households and businesses, with the reduction expected to be reflected in upcoming electricity bills.
The Central Power Purchasing Agency (CPPA) submitted a request to NEPRA for a downward revision in electricity prices under the fourth quarterly adjustment, citing lower fuel costs and a renegotiated deal with independent power producers (IPPs) that reduced capacity payments by Rs236 billion for fiscal year 2025-26.
The approved reduction of Rs1.88 per unit applies to all consumer categories, including those served by K-Electric and government-run distribution companies (DISCOs), except for lifeline consumers using up to 50 units per month, whose tariff remains unchanged at Rs3.95 per unit.
According to NEPRA, the tariff cut is expected to deliver over Rs57 billion in total relief to consumers, with potential reductions of up to Rs2.10 per unit for the months of September, October, and November if further adjustments are approved.
The decision follows a public hearing where the Power Division attributed the relief to rupee stability, declining global fuel prices, and reduced capacity charges, which dropped by Rs1.34 per unit to Rs17.06 per unit for 2025-26.
The revised tariff structure maintains rates for protected consumers, with those using 1-100 units paying Rs10.54 per unit and those using 101-200 units paying Rs13.01 per unit. Non-protected domestic consumers will see rates ranging from Rs22.44 per unit for 1-100 units to Rs47.69 per unit for those consuming over 700 units.
Commercial consumers will benefit from a new average base tariff of Rs45.43 per unit, while industrial and agricultural consumers will pay Rs33.48 and Rs30.75 per unit, respectively.
READ MORE: Electricity Bills to Drop as NEPRA Cuts Power Tariff
NEPRA has forwarded the decision to the federal government for final approval and implementation, with the Power Division expected to present a summary to the federal cabinet to update subsidy mechanisms.
The move aligns with efforts to ensure uniform pricing across Pakistan and address regional disparities, as committed to the International Monetary Fund. The reduction comes as a rare fiscal reprieve amid ongoing economic challenges, with NEPRA emphasizing the need for timely notification to prevent revenue shortfalls and curb circular debt.
