Electricity tariff likely to drop in Pakistan

ISLAMABAD: Electricity tariff is expected to decrease across Pakistan, including Karachi, as a request has been filed to reduce the power tariff by Rs 1.69 per unit under the Fuel Cost Adjustment (FCA) for July.

The Central Power Purchasing Agency (CPPA) has submitted the request to the National Electric Power Regulatory Authority (NEPRA), which is scheduled to hold a public hearing on August 28.

According to the petition, in July, a total of 14.123 billion units of electricity were generated. Of this, 13.666 billion units were supplied to distribution companies.

The cost of electricity generation stood at Rs 8.18 per unit.

NEPRA will decide on the tariff reduction after reviewing the request during the hearing.

Meanwhile, the Economic Coordination Committee (ECC) has already approved the implementation of uniform fuel cost adjustments across the country.

Under the ECC’s policy guidelines, the monthly FCA will also apply to K-Electric consumers.

The National Electric Power Regulatory Authority (NEPRA) approved a reduction of Rs 1.88 per unit under quarterly tariff adjustment for the fourth quarter of FY 2024-25.

This approval will result in a negative adjustment of Rs55.87 billion that will be given to consumers from August to October 2025.

This step has been taken after capacity charges reduction and an increase in industrial electricity sales.

The NEPRA quarterly tariff adjustment will apply to all consumer categories of XWDISCOs and K-Electric once the federal government approves the adjustment.