The anticipated Rs1.52 per unit reduction in electricity tariffs, as announced by Prime Minister Shehbaz Sharif, will not be reflected in consumers’ April bills. The National Electric Power Regulatory Authority (NEPRA) confirmed that this relief will now commence in May and continue through July.
During a recent NEPRA hearing, the Central Power Purchasing Agency (CPPA) indicated that the delay is due to increased fuel costs and a 20% surge in electricity demand, coupled with reduced hydropower availability. These factors may lead to higher fuel cost adjustments in the upcoming months.
The Rs1.52 per unit reduction stems from a Rs52 billion decrease in quarterly tariff adjustments for January to March 2025. Export sector representatives had urged for the relief to be applied from April, aligning with their order commitments based on the Prime Minister’s announcement. However, NEPRA clarified that April bills have already been issued in some regions, making retroactive adjustments unfeasible.
NEPRA Chairman Waseem Mukhtar expressed dissatisfaction over the absence of senior officials from Hyderabad, Multan, and Quetta electric supply companies during the hearing, demanding explanations for their non-attendance. He also noted the lack of representation from the Power Division and directed a formal notice to be sent to the federal secretary of power.
In March, electricity consumption rose by 4.4% compared to the previous year, with 75% of the supply sourced domestically, including 20% from zero-cost fuels. Despite these factors, the average fuel cost was reported at Rs9.22 per unit, slightly lower than the Rs9.34 per unit in March of the previous year.
