ISLAMABAD: In a move aimed at providing nationwide relief, the federal government has requested a reduction of Rs1.15 per unit in electricity tariffs starting July 1, 2025. A petition has been submitted to the National Electric Power Regulatory Authority (NEPRA), seeking implementation of the new rates across all consumer categories—except lifeline domestic users who are already heavily subsidised.
NEPRA will hold a public hearing on July 1 before final approval and notification.
According to the proposal, protected domestic consumers using 1–100 units would see their rate drop to Rs10.54 from Rs11.69 per unit, while those consuming 101–200 units would pay Rs13.01 instead of Rs14.16. Non-protected users consuming over 200 units would also receive marginal relief.
All other categories—commercial, industrial, agricultural, and bulk—would benefit from a flat Rs1.15 per unit reduction, translating into a 3–4% cut. The average power tariff would decline to Rs31.60 from the current Rs32.75 per unit.
This revised tariff structure aligns with NEPRA’s FY2025-26 national average tariff determination of Rs34 per unit and reflects reduced subsidies in the federal budget under IMF guidelines. Subsidy allocations have been slashed across multiple areas, including KE, Balochistan tubewells, FATA, and AJK, as part of broader fiscal tightening efforts.
Despite the cuts, a Rs400 billion subsidy has been earmarked for the Pakistan Energy Resolving Fund to ensure timely payments to Chinese power producers.
The Power Division maintains that the proposed tariff complies with the National Electricity Policy 2021, ensuring financial sustainability while supporting socio-economic objectives.
Story by Khaleeq Kiani
