- The request recommends a reduction application to all distribution companies.
- Domestic consumers for life do not be covered by this adjustment.
- Govt is looking for a subsidy for three months to improve the demand for electricity.
Islamabad: The federal government officially submitted a request to the National Electric Power Regulatory Authority (NEPRA) requesting a reduction in RS1.71 per unit of electricity price.
According to the petition, the proposed reduction in the power rate will be implemented by an increase in the differential tariff subsidy.
The request recommends that the reduction applies to all distribution companies, including K-Electric, for the period from April to June 2025. However, national consumers will not be covered by this adjustment.
The NEPRA has planned an hearing on the government’s petition for April 4. If it is approved, the federal government will provide a subsidy of RS1,71 per unit to electricity consumers from April to June.
According to a document available for Geo NewsThe government asked for the subsidy for three months to improve the demand for electricity. The national average rate for the year 2024-25 determined by the NEPRA was RS35.50 / kWh, against which the government notified the national average rate is RS32.99 / kWh for October 2024 and to fill the gap through a differential tariff subsidy.
It can be noted that the International Monetary Fund (IMF) approved a reduction in RE1 per unit of electricity prices, relieving all consumers on Thursday.
The price relief, in accordance with IMF managers, will be extended to all electricity users and will be funded by the income generated by the levy imposed on captive power plants using gas.
The development follows the staff level agreement (SLA) between the lender based in Washington and the Pakistani authorities concerning the first examination of the rescue program in the course of 37 months.
The lender said that this measure aims to compensate for financial pressures while maintaining budgetary stability.
It is relevant to know that even independent electricity producers (PPI) have proposed to reduce electricity prices to RE0.50 per unit and to renounce more than RS11 billion late payment cabbage – provided that the Government withdraws all legal proceedings and current investigations on alleged excessive benefits.
Meanwhile, the government is also working on the finalization of negotiations with 75 other electricity producers – mainly solar and wind – at the end of April or May after having concluded talks with 29 PPIs which would allow 3.498 Billions of RS rupees, despite the international resistance in some cases.