ISLAMABAD: The Federal Government has formally requested the National Electric Power Regulatory Authority (NEPRA) to implement a uniform electricity tariff across the country — including Karachi — starting July 1, 2025.
This move aligns with the government’s broader energy reform agenda and follows a 13% cut in power sector subsidies for the upcoming fiscal year, reducing support from Rs 1.190 trillion in FY 2024–25 to Rs 1.036 trillion.
The request cites NEPRA’s latest tariff determination for distribution companies (Discos), issued on June 23, 2025, which lowered the national average tariff from Rs 35.50 to Rs 34 per kilowatt-hour (kWh).
The government based its proposal on the National Electricity Policy 2021, endorsed by the Council of Common Interests (CCI), which mandates full cost recovery through efficient tariffs (Clause 5.6.1) and calls for a gradual phase-out of untargeted subsidies, except for vulnerable lifeline, industrial, or agricultural consumers (Clause 5.6.4).
In its motion, the Power Division reiterated its commitment to a uniform tariff structure nationwide, citing socio-economic equity, fiscal limitations, and NEPRA’s policy framework. It called on NEPRA to design a standard tariff schedule for all federally owned Discos, including quarterly adjustments.
The request invokes Section 31(4) of the NEPRA Act, which authorizes NEPRA to set a uniform tariff for public sector licensees using consolidated financial data while safeguarding consumer interests. The Authority has previously exercised this mandate, including in July 2024, incorporating targeted and cross-subsidies.
After reviewing NEPRA’s June 2025 tariff proposals, the Federal Government decided to apply Section 31(4) once again, forwarding the plan to NEPRA following Cabinet submission on June 28, 2025.
The Power Division emphasized that this tariff rationalization is not aimed at increasing federal revenue but is designed to comply with constitutional and policy requirements within the approved revenue needs of Discos.
Under Section 31(7), NEPRA will be authorized to finalize and replace the existing tariff rates issued on July 14, 2024, with the new uniform structure.
The government also seeks to align K-Electric’s consumer tariffs with those of public sector Discos. KE’s variable charges will be adjusted to match its revenue requirements through a blend of targeted and cross-subsidies. A separate motion under Sections 7, 31(4), and 31(7) of the NEPRA Act has been filed for this purpose.
NEPRA is set to conduct a public hearing on July 1, 2025, to deliberate on and potentially approve the Federal Government’s proposal.
Established under the NEPRA Act of 1997, the National Electric Power Regulatory Authority is responsible for overseeing Pakistan’s electricity sector — ensuring efficient generation, transmission, and distribution while balancing market growth with consumer protection.
