Electricity Prices in Pakistan May Drop by Rs 1.75 Per Unit | NEPRA Tariff Update 2025
Good news is on the horizon for electricity consumers across Pakistan. A significant reduction in electricity prices is expected soon, bringing a much-needed break for households and businesses already burdened by high energy costs. According to the latest developments, the Central Power Purchasing Agency (CPPA-G) has submitted a formal request to the National Electric Power Regulatory Authority (NEPRA) seeking a reduction in power rates by Rs 1.75 per unit under the quarterly tariff adjustment system.
This move, if approved, could deliver over Rs 53 billion in relief to consumers nationwide, including those in areas served by K-Electric and government-run DISCOs (Distribution Companies).
Why Is This Price Cut Happening?
The request from CPPA-G relates to the fourth quarter of the financial year 2024–25. Several factors are contributing to this potential price cut:
- Lower generation costs in recent months due to improved fuel efficiency.
- Increased hydropower generation which is cheaper compared to thermal and oil-based sources.
- Reduction in capacity charges due to better management of existing power plants.
- Decline in fuel prices internationally, impacting local energy production costs positively.
What Is Quarterly Tariff Adjustment?
Quarterly Tariff Adjustment (QTA) is a standard practice where electricity prices are revised every three months based on the actual cost of power generation. This ensures that consumers either pay less or more depending on fuel prices, generation mix, and other operational factors.
NEPRA Hearing and Approval Process
The submitted request is not final yet. NEPRA has scheduled a hearing on August 4, 2025, where stakeholders, including power companies and consumer representatives, will present their views. NEPRA will then review the data provided by CPPA-G before making a final decision.
What Happens If It Gets Approved?
If NEPRA approves the adjustment, consumers can expect the following:
- A Rs 1.75 per unit reduction in electricity rates for July, August, and September.
- Further relief of up to Rs 2.10 per unit may be granted for the months of September, October, and November, depending on future adjustments.
- A direct saving of billions of rupees in electricity bills nationwide.
- The price cut would apply to K-Electric consumers as well as those using electricity through public DISCOs.
Who Will Benefit?
This relief will benefit almost all electricity users across Pakistan, including:
- Domestic consumers
- Commercial users
- Small and medium industries
- Agricultural users
Even households with average monthly usage could see noticeable reductions in their bills.
Key Highlights
- Proposed Reduction: Rs 1.75 per unit initially.
- Time Period: July to September (Q4 FY 2024–25).
- Additional Relief Possibility: Up to Rs 2.10 per unit in later months.
- Consumers Affected: Nationwide, including K-Electric and public DISCO users.
- Total Potential Relief: Over Rs 53 billion.
Frequently Asked Questions (FAQs)
Why is electricity getting cheaper?
The cost of generating electricity has gone down recently due to lower fuel prices and increased reliance on cheaper hydropower. These savings are now being passed on to consumers through the quarterly tariff adjustment.
What is CPPA-G?
The Central Power Purchasing Agency-Guaranteed is responsible for buying electricity from power producers and supplying it to DISCOs. It keeps track of production costs and files requests like this with NEPRA for adjustments.
What does NEPRA do?
NEPRA regulates electricity prices in Pakistan. It approves or rejects requests from CPPA-G after detailed hearings and analysis.
Is this relief guaranteed?
No, it is still under review. NEPRA will decide after a public hearing on August 4, 2025.
How will I know if the reduction is approved?
Once NEPRA announces its decision, the reduced rates will reflect in your monthly electricity bills in the next billing cycle.
In Simple Words…
Electricity prices in Pakistan may soon go down by Rs 1.75 per unit if the request by CPPA-G gets approved. This would mean big savings for millions of people across the country. The reduction will help everyone from households to small businesses, giving some financial relief in tough times.
Final Thoughts
Energy prices have been a major concern for people in Pakistan, and this expected relief—though temporary—is a step in the right direction. If fuel prices remain stable and more clean energy sources are used in the future, we may continue to see affordable power for everyone.
The upcoming hearing on August 4 will be key. Until then, consumers can stay hopeful for some real savings on their next electricity bill.
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