The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a revision in the electricity tariff rebasing timeline, directing that annual rebasing be notified from January 1 each year, starting 2025, after regulatory proceedings are completed.
The decision, made during a meeting chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, aims to address consumer grievances linked to overlapping tariff adjustments in summer months.
The ECC discussed and approved the Power Division’s proposal, which argued that high Fuel Charges Adjustments (FCAs) and Quarterly Tariff Adjustments (QTAs) during peak consumption months often lead to unaffordable electricity bills, public dissatisfaction, and nationwide protests.
Policy guidelines were also approved for the National Electric Power Regulatory Authority (Nepra) to amend its legal and regulatory framework to align with the new rebasing timeline.
However, Nepra noted that the rebasing process effective from July 2025 is already underway, requiring nine months for regulatory approvals under existing guidelines. The regulator expressed reservations over making January 2025 the effective start date but acknowledged the long-term advantages of shifting rebasing to winter months.
The Power Division highlighted that a January timeline would help stabilise electricity prices year-round, alleviating financial pressure on consumers during high-demand summer periods.
The ECC directed the Power Division to collaborate with Nepra to ensure the implementation of the revised timeline and address any regulatory challenges.
