ISLAMABAD — In a move offering rare financial relief to millions of electricity consumers across Pakistan, Nepra has approved a Rs1.15 per unit reduction in power tariffs. The decision, aimed at ensuring uniformity across the country’s electricity billing system, comes amid a complex backdrop of economic pressures and ongoing power sector reforms.
The cut applies to all categories of users except lifeline consumers—those who use 50 units or fewer per month—who will continue to pay Rs3.95 per unit. Households using 100 units will also maintain their current rate of Rs7.74. Protected users will now be billed Rs10.54 for 100 units and Rs13 for 200 units.
But the real shift is for non-protected, commercial, and industrial users. The Rs1.15 per unit reduction lowers the commercial rate to Rs45.43 per unit and general services to Rs43.17. Industrial consumers will now pay Rs33.48 per unit, bulk users Rs41.76, and agricultural users Rs30.75.
This policy shift was outlined during Nepra’s hearing on the Power Division’s motion to rationalize tariffs, where officials explained that the drop is enabled by improved economic indicators—falling global fuel prices, a stable rupee, and better power generation deals. For example, renegotiated contracts with Independent Power Producers (IPPs) are expected to save Rs236 billion in capacity payments in the upcoming fiscal year.
Estimates now peg electricity consumption for FY2025-26 at 103 billion units, slightly lower than the 106 billion units for the current year. The revenue target has also been revised down to Rs3.521 trillion.
Still, not all is solved. Capacity payments—what the government pays to power producers regardless of how much electricity is used—remain a major burden. These are expected to reach Rs1.766 trillion next year, or Rs17.06 per unit, down slightly from last year’s Rs1.952 trillion.
Though modest, this tariff reduction may provide a bit of breathing room for households and businesses grappling with inflation and high utility costs.