The National Electric Power Regulatory Authority (NEPRA) approved a government proposal aimed at reducing RS1.71 electricity prices per unit, citing relief in the oil development tax (PDL).
The reduction will apply to consumers nationally, including those of Karachi, for the period from April to June 2025.
Following a consensus with the International Monetary Fund (IMF), Prime Minister Shehbaz Sharif announced earlier this month a reduction in power prices for domestic and industrial consumers by 7.41 rupees and 7.69 rupees per unit, respectively.
The decision was sent to the federal government for formal implementation. However, NEPRA has confirmed that Lifeline consumers will not benefit from the reduction.
The federal government has applied for price reduction to NEPRA, which led an audience on the issue on April 4.
“Authority has no objection on the instant motion, because it has no impact on the determined tariff of NEPRA, because the GOP (Pakistan government) has decided to provide additional subsidies from the expected collection of PDL,” read the Nepra decision, published on its website.
“Consequently, the ministry’s request (of energy) to provide (one) additional RS.L.71 / kWh grant to all consumers of Xwiscos and K-Electric (with the exception of life consumers) for the period from April 2025 to June 2025 is approved by these,” said the electricity regulator in the notification.
The NEPRA cited the Minister of Energy by saying (during the audience of April 4) that the projected collection of PDL for 3.5 months was around 58.6 billion rupees – to be used to provide different tariff subsidies to consumers.
“The federal cabinet approved this proposal and authorized to submit the request before the NEPRA so that (the) advantage can be reflected in consumers during the invoicing month of April 2025,” said the NEPRA document.
For national consumers, the power rate was previously 48.70 rupees per unit, which had already been reduced to RS45.05.
The new RS7.41 reduction per unit immediately takes effect. For industrial consumers, the price of June 2024 from RS58.50 per unit has been reduced to RS48.19, with an additional RS7.69 reduction per unit announced.