Government Proposes Rs.1.15 Per Unit Cut in Electricity Price

In a bid to ease the burden on electricity consumers, the federal government has petitioned NEPRA (National Electric Power Regulatory Authority) to implement a flat reduction of Rs 1.15 per unit on electricity tariffs. The proposed cut would benefit most categories—including domestic, commercial, industrial, agricultural, and bulk consumers—while exempting lifeline consumers at the lowest slabs.

Jul 1, 2025 - 11:56
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Government Proposes Rs.1.15 Per Unit Cut in Electricity Price
Government Proposes Rs.1.15 Per Unit Cut in Electricity Price

In a bid to ease the burden on electricity consumers, the federal government has petitioned NEPRA (National Electric Power Regulatory Authority) to implement a flat reduction of Rs 1.15 per unit on electricity tariffs. The proposed cut would benefit most categories—including domestic, commercial, industrial, agricultural, and bulk consumers—while exempting lifeline consumers at the lowest slabs.

  • Proposed reduction: Rs 1.15 per unit across most consumer categories

  • Lifeline users (0–50 units): Remain at Rs 3.95/unit; (51–100 units): Rs 7.74/unit 

  • Domestic protected users (1–100 units): Price drops to Rs 10.54 from Rs 11.69 (–9.8%) 

  • Domestic (101–200 units): New rate Rs 13.01/unit, down from Rs 14.16 (–8%) 

  • Non-protected users (>200 units): Price lowers to Rs 23.44 from Rs 23.59 (approx. 5% reduction)

  • Average tariff: Falls to Rs 31.60/unit from Rs 32.75/unit

  • High global fuel costs and a weaker PKR raised power generation expenses

  • Policy alignment: Reflects reduced subsidies in the federal budget per the IMF's demands 

  • NEPRA’s FY2025–26 determination: Approved a national average tariff of Rs 34/unit (down from Rs 35.50)

  • Monthly savings: Even modest consumption can save hundreds of rupees (e.g., 200 units → Rs 230 saved monthly)

  • Lower living costs: Reduced bills ease inflation on daily essentials

  • Business benefits: SMEs, agriculture, and factories get modest cost relief

  • Economic boost: Increased disposable income could spur consumer spending

Inflationary moderation: Energy costs influence the prices of goods and services

Subsidy realignment: Budget subsidies cut by ~12.9% to Rs 1.04 trillion from Rs 1.19 trillion 

Uniform tariff push: The government urges a single national framework, including K-Electric

Provincial reforms: Provinces may remove electricity duties to streamline billing

  • July 1 NEPRA Hearing: Public review and approval process initiated

  • Formal Notification: Following NEPRA's decision, rates will be updated by the Power Division

  • Consumer Awareness: Utilities will circulate new tariff tables and bill changes

  • Ongoing Review: Future adjustments tied to fuel costs, exchange rates, and subsidy policy

A proposed Rs 1.15 per unit tariff cut brings tangible relief to Pakistan’s electricity consumers. While lifeline users remain untouched, domestic (protected and unprotected), business, agricultural, and industrial users stand to benefit. The move aligns with subsidy reductions under the IMF-backed budget, and a NEPRA review is scheduled for July 1. If approved, this Bihar-style policy may ease costs for millions and mark progress in transparent, consumer-friendly power sector reforms.

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