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Nepra Reserves Decision on Rs1.71 Power Tariff Cut for April-June
Nepra hears govt’s plea to cut electricity rates by Rs1.71/unit for Apr-Jun, with final decision pending. PM Shehbaz’s Rs7.41/unit relief includes petroleum levy and fuel adjustments.
ND
by News Desk
2025-04-04
Nepra Reserves Decision on Rs1.71 Power Tariff Cut for April-June

The National Electric Power Regulatory Authority (Nepra) on Friday conducted a hearing on the federal government’s petition seeking a Rs1.71 per unit reduction in electricity tariffs for all consumers from April to June 2025. The authority has reserved its decision, which will be announced at a later date.

Breakdown of PM Shehbaz’s Rs7.41 Relief Package

The hearing revealed that the Rs7.41 per unit reduction in power tariffs announced by Prime Minister Shehbaz Sharif on Thursday includes:

  • Rs1.71/unit relief through petroleum levy adjustments
  • Rs1.90/unit reduction in the second-quarter adjustment for this fiscal year
  • Rs1.36/unit cut under monthly fuel price adjustments
  • Re1/unit expected reduction in the third-quarter adjustment

The total impact, after taxes, will reach Rs7.41 per unit.

Economic Stability Key to Sustained Relief

During the hearing, Power Division officials stated that the tariff relief remains contingent on economic stability. If economic conditions remain favorable, consumers will continue to benefit from lower electricity costs. However, annual tariff rebasing is not possible at this time, so the government is providing relief through quarterly adjustments instead.

Officials also disclosed that the government expects to collect Rs58.7 billion through petroleum levy collections over the next three months. This levy is being used to finance electricity relief measures for consumers.

Efforts to Reduce Circular Debt & IPP Agreements

The government has also taken steps to address Pakistan’s mounting circular debt, with ongoing talks with the International Monetary Fund (IMF) aimed at securing further reductions. Officials assured that once these negotiations conclude, additional relief measures will be announced for electricity consumers.

Additionally, the government has renegotiated agreements with five Independent Power Producers (IPPs) in the second-quarter adjustment, resulting in Rs12 billion in savings. So far, agreements have been revised with 32 IPPs, indicating further potential cost reductions in power generation.

What’s Next?

The final decision on the Rs1.71 per unit reduction for April-June 2025 now lies with Nepra, which will issue a verdict after further deliberation. If approved, it will provide much-needed relief to consumers burdened by high electricity costs amid ongoing economic challenges.

 
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