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Electricity Prices Likely to Drop in Pakistan as CPPA Proposes Tariff Cut

Electricity Prices Likely to Drop in Pakistan as CPPA Proposes Tariff Cut

ISLAMABAD – In a move that could bring significant financial relief to power consumers, electricity prices are likely to drop in Pakistan. The Central Power Purchasing Agency (CPPA) has submitted a formal request to the National Electric Power Regulatory Authority (NEPRA) for a reduction in electricity tariffs.

The CPPA is seeking a decrease of Rs 1.75 per unit under the quarterly adjustment for the fourth quarter of the fiscal year 2024–25. NEPRA is set to review the petition today, August 4, 2025.

If NEPRA approves the proposed adjustment, it would result in relief worth over Rs53 billion for consumers. The revised rates would apply to all government-owned distribution companies, including K-Electric, and would affect electricity bills issued in August, September, and October 2025.

The electricity tariff cut comes amid growing pressure to ease the financial burden on households and businesses. If further revisions are approved in the coming months, the per-unit relief could rise to Rs2.10 for September through November.

Meanwhile, K-Electric has issued a clarification in response to rumors about changes in electricity rates. The company confirmed that it does not have the authority to alter consumer tariffs on its own.

A spokesperson for K-Electric explained that electricity prices, slabs, and consumer categories are determined by the federal government. These rates are governed by the electricity tariff policy managed by the Ministry of Energy’s Power Division.

Any change to the existing tariff structure must be approved through an official notification from the government. The spokesperson added that all distribution companies follow the same pricing policy without exception.

This development follows recent efforts by authorities to adjust power costs in line with fiscal reforms and public demand for lower energy bills. Consumers across Pakistan are now awaiting NEPRA’s decision, which could help reduce their electricity expenses in the coming months.

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