Government plans Rs2 per unit reduction in power tariffs

Islamabad: The federal government has decided to reduce electricity prices by Rs2 per unit for the second quarter of the 2024-25 fiscal year. The price cut, expected to provide over Rs52 billion in relief to consumers, could take effect in March.

Power distribution companies have submitted their requests for the quarterly tariff adjustment to the National Electric Power Regulatory Authority (Nepra), which will hold a public hearing on February 12 to discuss the proposal.

If approved, the price reduction will apply to electricity bills for March, April, and May. However, lifeline consumers will not benefit from the price cut, although K-Electric customers will be included in the adjustment.

This proposed reduction aims to provide temporary relief to consumers facing rising inflation and economic challenges. The government hopes the lower rates will help households and businesses manage their expenses. The final decision will be made by Nepra, which will assess whether the adjustment aligns with economic and energy policy goals. If approved, the new rates will be applied in the coming months.