The National Regulatory Authority of Electric Power (NEPRA) reduced the base energy rate at RS1.49 per unit for the next fiscal year on Wednesday.
Nepra spokesman Safeer Hussain confirmed the development of Dawn.com and said the proposal had been sent to the federal government.
Last month, against high hope, the government sought review at the base electricity rate for the next fiscal year, proposing only 30 lands to a maximum of RS2.25 per unit of reduction in consumer rates under seven different scenarios.
Only in an unlikely case of normal circumstances and a stable exchange rate in RS280, the average base rate would be reduced by RS2.25 per unit in fiscal year 2025-26 to RS24.75 of the prevailing rate of approximately RS27 per unit.
In case of depreciation of local currency to RS300, the reduction of the base tariff would be around 30 lands per unit. The reduction comes mainly from lower capacity payments.
The average energy purchase price (PPP) would be at the top of approximately RS8.16 to RS9.52 per unit of fuel cost, which has the total price of electricity to range between RS34 and RS35 per unit, excluding taxes, rates, tariffs and surcharges.
It is projected that the demand for electricity will grow between three and five percent in all cases, but only if the exchange rate remains stable in RS280. The exchange rate is supposed to be RS300 in the other six cases. In addition, the United States inflation has been taken at 2PC, Pakistan inflation at 8.65PC, in addition to 11.9pc Karachi Interbank offered rate, 4.07pc international interest rate and transmission losses to 2.80 percent.
The determination of nepring would be taken to the federal cabinet for approval and assignment of subsidies, and the energy division would present a table of monitoring rates to Nepra to hit subsidies for several categories and slabs of consumers before formal notification with effect from July 1 as already committed to the International Monetary Fund.
