ISLAMABAD: In a major relief for electricity consumers, the National Electric Power Regulatory Authority (Nepra) on Thursday approved the federal government’s request to reduce electricity prices by Rs1.71 per unit for three months — from April to June 2025.
The decision follows a formal petition filed by the Ministry of Energy last month as part of the government’s broader efforts to reduce consumer-end tariffs and stimulate power demand across the country.
Nepra conducted a public hearing on the matter on April 4, during which it was revealed that the Rs7.41 per unit cut announced earlier by Prime Minister Shehbaz Sharif included a Rs1.71 per unit relief through the Petroleum Development Levy (PDL).
According to Nepra’s written order, which has been shared with the government for formal notification, the regulator found no objections to the request, since it involved no change to Nepra’s determined tariff structure.
“The Authority has no objection on the instant Motion, as it does not impact Nepra’s determined tariff, since the Government of Pakistan has decided to provide additional subsidy from the expected collection of Petroleum Development Levy,” the decision stated.
The approved subsidy will apply to all consumers of XWDISCOs and K-Electric, excluding lifeline consumers, ensuring broader coverage of the relief across Pakistan’s power sector.
During the April 4 hearing, the Federal Minister for Energy informed Nepra that the estimated collection from the Petroleum Development Levy over 3.5 months was projected at Rs58.6 billion — funds that will now be used to bridge the gap as tariff differential subsidies.
Nepra’s decision affirmed that the federal cabinet had endorsed the proposal, and the benefit will begin reflecting in April 2025 electricity bills.
This subsidy is part of the government’s ongoing measures to manage inflation and mitigate the financial burden on electricity consumers, amid rising energy costs and economic pressures.
