ISLAMABAD: In a significant development for electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs. 1.50 per unit in the base electricity tariff for the upcoming fiscal year 2025–26.
The decision has been sent to the federal government for final endorsement, after which the new tariff structure will be officially announced. According to NEPRA officials, the proposed base tariff for the next fiscal year is set at Rs. 34 per unit, down from the current Rs. 35.50 per unit — offering some relief to consumers amid persistent inflation and rising living costs.
The reduction in the base tariff is part of NEPRA’s broader plan to align power tariffs with the country’s economic realities and improve affordability for end-users. However, implementation hinges on federal government approval, which is expected in the coming weeks.
On another front, there may be a slight increase in electricity prices due to the monthly fuel price adjustment (FPA) for May 2025. The Central Power Purchasing Agency (CPPA) has submitted a request to NEPRA for an increase of Rs. 0.10 per unit under this adjustment.
A public hearing on the CPPA’s request is scheduled for June 30, 2025, during which stakeholders will have the opportunity to present their views before NEPRA issues its final decision.
It is important to note that this fuel price adjustment will not be applicable to K-Electric consumers, who fall under a different regulatory structure. While the base tariff reduction is expected to benefit electricity users across the country in the long term, the possible increase in monthly bills due to fuel adjustments may partially offset these gains in the short term.
Industry analysts suggest that the tariff reduction could encourage higher power consumption and reduce dependency on alternative, often more expensive, sources of energy. However, they caution that stability in power sector policy and fuel costs will be essential to maintain this benefit.
The decision comes at a time when the government is under pressure to reduce energy costs, which have been a major contributor to inflation and public dissatisfaction. Business groups, domestic users, and trade associations have long demanded a revision in the electricity pricing mechanism to ease financial pressure on households and enterprises.
