ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Thursday approved the Federal Government’s plan to provide a tariff relief of Rs1.71 per unit to electricity consumers across Distribution Companies (DISCOs) and K-Electric for the period of April to June 2025.
The relief aims to ease the financial burden on consumers and will be financed through an additional Rs58.6 billion raised via an increase in the Petroleum Development Levy (PDL).
NEPRA confirmed that the requested tariff adjustment does not affect its previously determined tariffs. The relief is part of the Federal Government’s strategy to maintain uniform electricity rates for consumers while bridging the gap between the national average tariff and the subsidised rate. NEPRA stated that it had no objections to the motion filed by the Ministry of Energy, noting that the subsidy would be funded through the additional PDL revenue.
The motion was submitted by the Ministry of Energy (Power Division) on March 27, 2025, proposing an increase in the Tariff Differential Subsidy (TDS) for electricity consumers. The national average tariff for FY2024–25, as set by NEPRA, was Rs35.50 per kWh. However, the government had notified a lower rate of Rs32.99 per kWh, subsidised through TDS. The new relief will further lower consumer costs, with the additional subsidy of Rs1.71 per kWh to be applied across all consumer categories, excluding lifeline users.
As part of the revised tariff structure, specific categories such as the B-4 industrial tariff will also see reductions. The peak rate for the B-4 category will decrease from Rs40.76 per kWh to Rs34.78 per kWh, while the off-peak rate will drop from Rs36.38 per kWh to Rs30.40 per kWh.
During a public hearing on April 4, 2025, NEPRA gave stakeholders the opportunity to voice their concerns. Key issues raised included the rising circular debt—currently at Rs2.4 trillion—and the increasing number of net metering connections. Industry experts and consumer representatives also called for the removal of the financing cost surcharge and rationalization of fixed charges.
The Ministry of Energy clarified that the additional TDS of Rs1.71 per kWh would apply to all consumer categories except lifeline users. The relief aims to reduce the financial strain on consumers while promoting energy demand in the upcoming quarter.
The Federal Government is now required to notify the decision in the official Gazette within the next 30 days. If it fails to do so, NEPRA has indicated it will take steps to ensure the notification is issued.
