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Energy Sector

Power Tariffs Slashed by Rs1.71 per Unit as Nepra Approves Relief Plan Backed by PDL Subsidy

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a government-backed proposal to lower electricity tariffs by Rs1.71 per unit from April to June 2025. This reduction—extended to consumers across the country, including those served by Karachi’s K-Electric—follows a government move to utilize funds collected through the Petroleum Development Levy (PDL) for consumer relief.

The decision, supported by the federal cabinet and aligned with commitments made to the International Monetary Fund (IMF), was finalized after a public hearing conducted by Nepra on April 4.

However, the tariff cut will not benefit lifeline consumers.

Nepra clarified in its statement that the proposed subsidy does not impact its determined tariff rates, as the government has opted to absorb the cost by allocating Rs58.6 billion from anticipated PDL collections. This move will support tariff differential subsidies for both domestic and industrial users.

Earlier this month, Prime Minister Shehbaz Sharif announced a broader relief package, including a Rs7.41 per unit reduction for domestic users and Rs7.69 for industrial users.

The domestic power tariff, which had already decreased from Rs48.70 to Rs45.05 per unit, will now drop further. Industrial tariffs, which stood at Rs58.50 per unit in June 2024, have been reduced to Rs48.19.

Nepra has forwarded its decision to the federal government for formal implementation, enabling the relief to be reflected in consumer bills starting April 2025.

Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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