Electricity prices expected to drop with new adjustments

ISLAMABAD: Electricity prices might see a dip under the upcoming monthly and quarterly adjustments for March, ARY News reported.

According to reports, electricity prices may drop by 3 paisa per unit in the monthly adjustment for March, while the quarterly adjustment could lead to a decrease of over 1 rupee per unit nationwide.

The Central Power Purchasing Agency (CPPA) has submitted a request for the monthly adjustment, and a hearing on the matter will be held on March 29.

In March, a total of 8.4 billion units of electricity were generated, with the cost of electricity standing at 9.22 rupees per unit, compared to the reference cost of 9.25 rupees per unit.

For the quarterly adjustment, the government is expected to pass on a relief amounting to 51.49 billion rupees to the public.

The application for the third quarterly adjustment for the fiscal year 2024-25 has been filed, with a request for a reduction of 47.12 billion rupees in capacity charges.

A hearing on the quarterly adjustment application will take place on April 29 at NEPRA (National Electric Power Regulatory Authority). If the adjustment is approved, consumers across the country can expect lower electricity prices.

Earlier, the National Electric Power Regulatory Authority (NEPRA) officially approved a Rs1.71 per unit electricity price reduction in across Pakistan, including Karachi, from April to June 2025

This decision comes in response to a formal request from the federal government, aiming to ease the financial burden on consumers amid rising inflation.

The price cut will apply to electricity bills issued during these three months, benefiting millions of households and businesses.

However, lifeline consumers will not be eligible for this relief. The federal government initially submitted the request to NEPRA, which conducted a hearing on April 4, 2025, before finalizing the decision.

Financial Impact and Government Strategy

The electricity price reduction is expected to provide Rs 58 billion in financial relief to consumers nationwide.

This move aligns with the government’s broader strategy to stabilize the energy sector and mitigate the impact of petroleum levy increases.

Last month, the government raised the petroleum levy on petrol and high-speed diesel by Rs10 per liter, and this electricity tariff cut is intended to offset some of the financial strain on the public.