Islamabad: The National Electric Power Regulatory Authority (Nepra) has approved a Rs1.71 per unit reduction in electricity prices, following the government’s plan to pass on relief to consumers due to a cut in the Petroleum Development Levy (PDL).
The reduced tariff will apply across the country — excluding lifeline consumers — from April to June 2025.
The decision comes in line with a broader commitment made to the International Monetary Fund (IMF) by the federal government. Earlier this month, Prime Minister Shehbaz Sharif announced a major relief package, slashing power tariffs for domestic consumers by Rs7.41 per unit and for industrial users by Rs7.69 per unit.
The federal cabinet had endorsed the proposal, which was formally submitted to Nepra by the Ministry of Energy. A public hearing on the motion was held on April 4.
Nepra, in its decision posted on its website, stated, “The Authority has no objection on the instant motion, as it does not impact Nepra’s determined tariff, since the GOP has decided to provide additional subsidy from the expected collection of PDL.”
As per the approved plan, the Rs1.71 per unit subsidy will apply to all consumers of XWDISCOs and K-Electric, except lifeline consumers. The energy minister informed Nepra that the government expects to collect Rs58.6 billion in PDL over the 3.5-month period, which will be used to finance the tariff differential subsidy.
The reduction is set to take effect in consumers’ bills from April 2025 onward.
The move comes as part of efforts to ease the burden of high electricity costs amid ongoing economic challenges and inflation. Prior to the latest cut, the domestic electricity tariff had already been lowered from Rs48.70 to Rs45.05 per unit.
With this latest relief, industrial tariffs have also dropped significantly from Rs58.50 to Rs48.19 per unit, a measure aimed at improving competitiveness and supporting economic activity.
