Electricity consumers set to pay billions in capacity payments this fiscal year

ISLAMABAD: Electricity consumers will continue to bear the burden of substantial capacity payments in the new fiscal year started on July 2025, ARY News reported.

According to official documents, the estimated capacity payments for the fiscal year 2025-26 are estimated at Rs 1,766 billion. It means the electricity consumers will have to pay Rs 17.06 per unit.

However, there is a slight relief, as capacity payments are expected to decrease by Rs 1.34 per unit on an annual basis.

The official documents also revealed that the revenue requirements for the next fiscal year are estimated to decrease from Rs 3,768 billion to Rs 3,521 billion.

The distribution margin is projected to rise from Rs 391 billion to Rs 396 billion. Additionally, an estimated Rs 174 billion will be collected from consumers under the Use of System Charges.

The value of the US dollar for the new fiscal year has been revised downward from Rs 300 to Rs 290.

Meanwhile, the cost of electricity generation is expected to decrease by Rs 1.27 per unit, and transmission losses are estimated at 11.04 percent for the upcoming year.

Earlier last month, the Power Division has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, through the implementation of a uniform tariff system

According to reports, NEPRA will hear the request on July 1, with adjustments set to take effect in the upcoming fiscal year.

As per the proposal, electricity prices for domestic users may drop by Rs 1.16 per unit, bringing the maximum tariff down from Rs 48.84 to Rs 47.69 per unit. This move is expected to ease the burden on middle-income households and low-usage consumers alike.

For protected users consuming up to 100 units, electricity prices could fall to Rs 10.54 per unit, while those using 101 to 200 units may see a revised rate of Rs 13.01 per unit.