Good News for Consumers: Electricity Prices Likely to Drop in Pakistan

Islamabad: In a recent hearing at NEPRA (National Electric Power Regulatory Authority), the government signalled a potential reduction in the base electricity tariff, offering significant relief to the public. The proposal suggests that electricity rates could be lowered by up to Rs. 2.25 per unit in the upcoming fiscal year.

According to officials, this reduction may bring relief worth Rs. 140 billion to Rs. 400 billion for power consumers. The estimated new power purchase price is expected to range between Rs 24.75 and Rs 26.22 per unit, down from the current Rs 27 per unit.

The Ministry of Energy stated that cheaper electricity and signs of economic recovery could lead to a 2.8% to 5% increase in power demand next year. In April alone, electricity demand reportedly surged by 28%.

NEPRA officials questioned the ministry’s projections regarding rising demand. In response, it was clarified that lower prices and an anticipated rise in GDP are the key factors behind the expected growth in electricity consumption.