In a welcome development for electricity consumers, power tariffs in Pakistan are likely to drop by Rs2 per unit. Power distribution companies have submitted this proposal to the National Electric Power Regulatory Authority (NEPRA) as part of the quarterly adjustment for January.
The Central Power Purchasing Agency (CPPA) has put forward the request under the monthly fuel adjustment mechanism. According to CPPA data, the electricity generation cost for January was recorded at Rs10.78 per unit, whereas the reference fuel cost stood at Rs13.01 per unit. If approved, this reduction will offer financial relief to consumers across the country.
The power generation mix for January comprised 10.63% hydel, 15.56% coal, 8.53% imported coal, 1.35% furnace oil, 13.11% local gas, 18.92% imported LNG, and 26.61% nuclear energy. NEPRA is scheduled to review the CPPA’s request today before making a final decision regarding the proposed price cut.
Earlier this month, Prime Minister Shehbaz Sharif reaffirmed his commitment to reducing electricity rates for households and industries. He noted that ongoing reforms in the power sector are producing positive results. During a review meeting in Islamabad, he expressed satisfaction with the progress made and reiterated his determination to provide affordable and sustainable electricity.
Additionally, PM Shehbaz discussed the government’s efforts to renegotiate contracts with Independent Power Producers (IPPs), explaining that these negotiations are helping to ease the financial burden on the national treasury while bringing down electricity costs for consumers. He also highlighted the administration’s campaign against electricity theft and vowed to enhance efforts to minimize distribution losses and boost efficiency in the energy sector.
This proposed reduction in electricity tariffs is part of the government’s broader initiative to provide economic relief and strengthen the sustainability of the power industry.
