Govt to shift non-protected electricity tariff from 201 to 301 units: sources

LAHORE: The federal government is reportedly considering a major change in the electricity tariff structure that currently affects millions of low-income consumers in Pakistan, ARY News reported citing sources.

As per sources, the non-protected status, which currently applies to anyone using even one unit above 200 units, may soon be revised to only apply to consumers using 301 units or more.

This change would offer relief to thousands of households in Pakistan who barely cross the 200-unit mark and are then subjected to much higher rates for six months under the non-protected category.

The matter was strongly raised in a recent federal cabinet meeting, where several ministers called the current policy unfair.

 

“A person using 201 units pays almost Rs. 5,000 extra over six months, that’s harsh, especially for low-income users,” cabinet members argued.

PM of Pakistan, Shehbaz Sharif was briefed on this concern and has reportedly hinted at forming a high-level committee to review the policy.

The committee will study the issue in detail and present its findings and recommendations to the federal cabinet.

Sources say another option under consideration is to apply the non-protected slab only in the month the limit is crossed, instead of locking the consumer into the higher rate for half a year.

The current 201-unit slab was originally introduced by NEPRA and Pakistan’s Ministry of Power, but growing public backlash has led to a possible policy review.

Earlier, electricity consumers in Pakistan were likely to get further reduction in power tariffs as part of quarterly and fuel price adjustments.

As per details, the price drop is anticipated to reflect in the billing cycles for August, September, and October 2025.

Power distribution companies submitted a request to the National Electric Power Regulatory Authority (NEPRA) for the fourth quarterly adjustment, with a hearing held on August 4, 2025.

Also Read: Electricity prices to drop further in Pakistan

The proposed quarterly adjustment is expected to result in a negative tariff of Rs1.89 per unit, primarily due to an amended agreement with power generation companies.

This adjustment will likely lead to an additional reduction of Rs0.34 per unit in August bills under the quarterly adjustment mechanism.