The federal government has announced plans to reduce electricity prices, with a proposed cut of Rs2 per unit for the second quarter of fiscal 2024-25. This reduction aims to provide much-needed relief to consumers, potentially saving over Rs52 billion if approved. Power distribution companies have already submitted their adjustment requests to the National Electric Power Regulatory Authority (NEPRA), with a public hearing scheduled for February 12.
If NEPRA approves the proposal, the revised electricity rates will take effect in March 2025, benefiting consumers in the months of March, April, and May. K-Electric customers will also see the price reduction, though lifeline consumers will not be eligible for the relief.
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In a separate development, Rehan Akhtar, CEO of the state-owned Central Power Purchase Agency (CPPA), announced that electricity consumers of all state-owned distribution companies (Discos) would see a smaller reduction of just 28 paise per unit in fuel costs for February. This follows a previous reduction of 76 paise per unit in January, based on November’s consumption.
Meanwhile, efforts to convince the International Monetary Fund (IMF) to approve a reduction in sales tax on electricity bills have been unsuccessful. The IMF rejected a request from Pakistan’s Ministry of Energy, which had sought tax relief to further ease the financial burden on consumers.
