• Reduction to benefit consumers in all categories, except domestic users ‘Lifeline’, using up to 50 units per month
• The relief was made based on the determination of the nepring rate, the energy purchase price, the reduced subsidies under the IMF agreement
• The regulator will hold a public hearing on Tuesday to consider the center’s application
Islamabad: The government wants to reduce the price of electricity for consumers throughout the country from July 1, it emerged on Sunday.
The Federal Government has presented a petition before the National Electric Power Authority (NEPRA), requesting a reduction of RS1.15 per unit at the rate.
The change would be applicable to all less lifeless national consumers.
Power’s division has advised any change in electricity rates for the first two lifeguards of national consumers, since they were already too subsidized.
Nepra has called a public audience on July 1 to complete the formality before the notification and application of the revised rate.
According to the petition, the rate per unit of Lifeline consumers with up to 50 units per month would remain unchanged in RS3.95, followed by RS7.74 for those in the range of 50 to 100 units.
For all other consumers and categories, the Government has sought a flat reduction of RS1.15 per unit for fiscal year 2025-26, but relief ranges between 3 and 10 percent depending on their respective rates today.
For example, consumers protected in the range of 1 to 100 units would now be loaded at RS10.54 per unit, instead of RS11.69 at present, a reduction of 9.8pc.
The posterior slab, from 101 to 200 units, in the protected category would be loaded in RS13.01 per unit instead of RS14.16 per unit, below 8 percent.
Non -protected consumers, those who consume more than 200 units, will be charged RS23.44 instead of RS23.59 per unit for the first 100 units, for almost 5 percent.
The reduction of rates for all other categories, including commercial, industrial, agricultural consumers and bulk would vary from 3 to 4pc but flat of RS1.15 per unit.
The average rate would reach around RS31.60 per unit, below approximately RS32.75 per unit today.
These rates have been resolved on the basis of the Nepring tariff determinations so that all distribution companies meet their income requirements, aggregate energy purchase prices in the 2010-26 fiscal year and reduced subsidies allocations in the federal budget under an agreement with the International Monetary Fund (IMF).
The Nepra had determined RS34 per national average rate unit for fiscal year 2010-26 against RS35.50 per unit this year.
The proposed rate has been resolved after incorporating approximately 12.9pc of lower subsidies allocation in the budget in RS1.04 billion for fiscal year 2025-26 against RS1.19TR in the fiscal year 2014-25.
This includes a differential subsidy of Inter-Disco (TDS) rates of RS249.14bn in fiscal year2025-26 against RS276bn in the outgoing year, less 10 percent.
The subsidy for the tariff differential to the tubes in Baluchistan will be RS4BN in 2025-26, below RS 9.5bn in 2024-25.
The number of subsidies for the fused districts of KP and the old Fata has been reduced by more than 38pc to RS40BN for fiscal year 2025-26 of RS 65BN for fiscal year 2014-25.
On the other hand, the subsidy assignment for K-Electric has also been reduced by 28pc, from RS174B in the outgoing fiscal year to RS125BN for next year.
Similarly, the TDS for Azad Jammu and Kashmira has also been reduced to 31.5pc of RS108bn this year to RS74bn.
The subsidy allocation for the Pakistan Energy Resolution Fund, aimed at guaranteeing appropriate payments for Chinese investors, has been protected from RS48bn, while TDS for the tribal region has been reduced by 39 percent of RS65BN to RS40BN.
However, a subsidy allocation of RS400BN has been made in the budget, a little higher than RS394BN in fiscal year 201025-26.
The Energy Division said that his request was in line with the National Electricity Policy, 2021, which he provided under clause 5.6.1 that “the financial sustainability of the sector is based on the recovery of the total cost of the service, to the feasible extent, through an efficient rate structure, which guarantees sufficient liquidity in the sector.”
He said that the proposed rate was in line with the determined nepring rates for all discos, socioeconomic objectives and budgetary objectives.
Nepra established the last uniform rate for discos through its determination of July 13, 2024 that had been notified on July 14.
The energy division said that the proposed uniform rate had been presented to the Federal Cabinet on Saturday (June 28).
Consequently, the uniform tariff, which reflects the economic and social policy of the Federal Government and was based on the consolidated income requirement approved and determined by the regulator, received the approval without changes.
Power’s division said the Government will also maintain a uniform end of the consumer for K-Electrical and discos, even after its privatization, through direct or indirect subsidies.
Consequently, the applicable uniform variable load is required to be modified to recover the income requirements determined by the nepring in view of the proposed cross subsidies and subsidies.
Posted in Dawn, June 30, 2025
