Hearing on Uniform Tariff Application Concluded, Electricity Prices Likely to Drop Nationwide, Including Karachi

Islamabad: A potential decrease in electricity prices is expected nationwide, including Karachi, as the hearing on the application for a uniform electricity tariff across the country has been completed. The Power Division has proposed a reduction in the basic tariff for the upcoming fiscal year.
According to reports, there is a possibility of a 1.16-rupee reduction in the basic electricity tariff for domestic consumers. The proposed new rates would lower the maximum tariff for households from 48.84 rupees to 47.69 rupees.
For consumers using up to 50 units per month, the tariff for the “Lifeline” category is suggested to remain at 3.95 rupees per unit. Similarly, for those using between 51 and 100 units per month, the tariff for “Lifeline” consumers is proposed to stay at 7.74 rupees per unit.
Furthermore, for protected domestic consumers using 1 to 100 units, a reduction of 1.15 rupees per unit is recommended, bringing the rate down to 10.54 rupees per unit. For consumers using between 101 and 200 units, the tariff is proposed to be 13.01 rupees per unit, while for non-protected consumers in the same range, it will be adjusted to 22.44 rupees per unit.
The following is the proposed tariff structure for higher consumption bands:
101 to 200 units: A decrease of 1.16 rupees to 28.91 rupees per unit
201 to 300 units: A reduction of 1.16 rupees to 33.10 rupees per unit
301 to 400 units: A reduction of 1.16 rupees to 37.99 rupees per unit
401 to 500 units: A reduction of 1.14 rupees to 40.22 rupees per unit
501 to 600 units: A reduction of 1.16 rupees to 41.62 rupees per unit
601 to 700 units: A reduction of 1.16 rupees to 42.76 rupees per unit
Over 700 units: A reduction of 1.15 rupees to 47.69 rupees per unit
During the National Electric Power Regulatory Authority (NEPRA) hearing, Power Division officials stated that the tariff reduction is due to the stabilization of the currency and a decrease in global fuel prices. NEPRA has also recommended a reduction in the basic tariff.
The Power Division further mentioned that the average basic tariff has decreased from 35.50 rupees to 34 rupees per unit, while capacity charges have reduced by 1.34 rupees per unit over the past year. Additionally, the production cost of electricity has fallen by 1.27 rupees per unit.
The NEPRA authority has completed the hearing on the government’s request for a basic tariff adjustment, and a decision will be issued after reviewing the data. If approved, the new tariff for the upcoming fiscal year is expected to decrease by 1.15 rupees per unit.