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Nepra Approves Rs1.71/unit Power Tariff Cut from April to June
Good news for electricity consumers: Nepra approves Rs1.71/unit cut in power bills from April to June as part of govt subsidy using Petroleum Levy collection.
ND
by News Desk
2025-04-10
Nepra Approves Rs1.71/unit Power Tariff Cut from April to June

In a welcome move for electricity consumers across Pakistan, the National Electric Power Regulatory Authority (Nepra) has approved a reduction of Rs1.71 per unit in power tariffs from April to June 2025. The decision comes in response to a formal request submitted by the government aimed at easing the burden on consumers and boosting demand through reduced electricity costs.

The request was heard by Nepra on April 4 and the decision, now officially conveyed to the federal government, clears the way for the subsidy to reflect in consumer bills starting April 2025.

According to Nepra's decision document, the cut does not affect the regulator’s determined base tariff, as it is being financed through the Petroleum Development Levy (PDL). The government has committed to subsidizing the tariff differential using funds collected under PDL, amounting to an estimated Rs58.6 billion over the 3.5-month period.

“The Authority has no objection on the instant motion, as it does not impact Nepra’s determined tariff,” the document stated. “Accordingly, the request of the Ministry [of Energy] to provide [an] additional subsidy of Rs1.71/kWh to all consumers of XWDISCOs and K-Electric (except lifeline consumers) for the period from April 2025 to June 2025 is hereby approved.”

It is important to note that this Rs1.71 per unit relief is part of a larger Rs7.41 per unit reduction in electricity prices announced earlier by Prime Minister Shehbaz Sharif. During the April 4 hearing, it was revealed that this broader relief package includes the petroleum levy-based subsidy.

The government’s plan, which has already been approved by the federal cabinet, seeks to apply the subsidy to all electricity users of distribution companies and K-Electric — except lifeline (very low-usage) consumers — with the goal of providing immediate financial relief and encouraging greater electricity consumption.

The Ministry of Energy submitted the proposal as part of its broader strategy to reduce end-user tariffs while maintaining financial stability in the power sector. With Nepra’s approval, the reduction is set to positively impact millions of consumers across the country.
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