Electricity tariff in Pakistan is expected to increase by Rs1.27 per unit, following a proposal submitted by the Central Power Purchasing Agency (CPPA). The increase is being sought under the fuel cost adjustment mechanism for the month of April. The National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a hearing on April 29 to review and decide on the proposed electricity tariff hike.
According to the CPPA’s petition, a total of 10.513 billion units of electricity were generated in April, out of which 10.196 billion units were supplied to distribution companies. The actual cost of electricity generation stood at Rs8.94 per unit, significantly higher than the reference cost of Rs7.68 per unit—a key factor driving the request to raise the electricity tariff.
The breakdown of electricity generation sources for April shows that 21.94% of the electricity came from hydropower, 14.51% from local coal, 10.02% from imported coal, and 0.97% from furnace oil. Additionally, 8.01% of electricity was generated using local gas, 20.52% from imported LNG, and 17.91% from nuclear energy. These varying energy inputs have contributed to the rising generation costs, which may soon be reflected in the revised electricity tariff.
While this potential hike in the electricity tariff is under consideration, NEPRA has simultaneously introduced some relief measures for electricity consumers. On May 10, NEPRA announced a reduction in electricity prices for Karachi residents. Consumers of K-Electric benefited from a Rs3.64 per unit decrease under the monthly fuel adjustment for February 2025.
Moreover, a nationwide electricity tariff relief of Rs1.55 per unit was announced as part of the third quarterly adjustment for the current fiscal year. This reduction will be reflected in electricity bills issued in May 2025, offering financial relief to millions of households and businesses across the country.
However, it is important to note that lifeline and protected consumers are excluded from these recent tariff relief measures and will not benefit from the reduced rates.
As Pakistan’s energy landscape continues to shift, updates to the electricity tariff remain a significant concern for both residential and commercial consumers. Stakeholders are closely watching NEPRA’s upcoming decision, which will determine the immediate future of electricity pricing in the country.
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