NEPRA Cuts Basic Power Tariff by Rs1.15 per Unit

The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.15 per unit in Pakistan’s basic electricity tariff for the fiscal year 2025–26, excluding lifeline (ultra-low-usage) consumers. This decision is set to ease the financial burden on households, industries, and businesses nationwide.

Key details:

Effective cut: Rs1.15 per unit decrease in the base power tariff.
Who benefits: Applies broadly—domestic, commercial, industrial, agricultural, and bulk sectors—except for lifeline users.
Scheduled hearing: A public hearing took place on July 1, with potential implementation beginning in July.
Impact on consumers:
- Protected domestic consumers (1–100 units/month): tariff drops from approximately Rs11.69 to Rs10.54 per unit (nearly 9.8% reduction).
- Usage of 101–200 units/month: decreases from about Rs14.16 to Rs13.01 per unit (≈8% cut).
- Larger consumers (>200 units/month): tariff lowers from around Rs23.59 to Rs23.44 per unit (nearly 5% reduction).
Rationale: The cut follows a 10% reduction in government subsidies on power-sector tariff differences—a drop from Rs276 billion to Rs249 billion in the federal budget—and aligns with efforts to maintain energy-sector financial sustainability.