Accepting the Power Division’s request for a uniform tariff nationwide, the National Electric Power Regulatory Authority (NEPRA) on Tuesday reduced the electricity rate by Rs. 1.15/unit for all except lifeline consumers, including consumers of the private K-Electric.
In its motion, the Power Division had argued that tariff rationalization seeks to fulfill parameters outline in the Constitution as well as prevailing policy. The new tariff would come into effect from July 1, 2025.
In its ruling, the regulator said the tariff for lifeline consumers using up to 50 units would remain fixed at Rs. 3.95/unit, while those using up to 100 units will continue to pay Rs. 7.74/unit.
The tariff for protected consumers using up to 100 units has been reduced from Rs. 11.69/unit to Rs. 10.54/unit, while those using 101-200 units would be required to pay Rs. 13.01/unit.
For non-protected consumers using up to 100 units, the tariff has been reduced from Rs. 23.69/unit to Rs. 22.44/unit. Consumers using 101-200 units would now pay Rs. 28.91/unit, while those using 201-300 units would pay Rs. 33.1/unit. Consumers utilizing more than 300 units would now pay a tariff of Rs. 41.78/unit.
The Rs. 1.15/unit reduction also applies to commercial consumers, whose average base tariff has been reduced to Rs. 45.43/unit, while industrial consumers would now pay Rs. 33.48/unit. General Services consumers would now pay Rs. 43.17/unit, while bulk electricity consumers would pay Rs. 41.76/unit.
Agricultural consumers would now pay Rs. 30.75/unit.
During the hearing, the government cited rupee stability, declining capacity payments and declining global fuel prices in support of the tariff reduction. Ironically, the same government cited rupee depreciation and surging global fuel prices to hike petrol and diesel prices for the next fortnight.
Power Division officials told NEPRA authorities had estimated a nationwide electricity consumption in FY2025-26 of 103 billion units, slightly lower than the 106 billion units projected for the last fiscal year. However, capacity payments remain a pressing concern, with NEPRA claiming a projected cost of Rs. 1.766 trillion or Rs. 17.06/unit.
During the hearing, the Power Division also claimed there are no plans to impose a Rs. 3.23/unit surcharge on electricity bills to repay commercial loans taken from banks to retire circular debt.