Electricity Prices Become Unbearable Due to Taxes and Surcharges, Says NEPRA

Islamabad: The National Electric Power Regulatory Authority (NEPRA) has released its Power Sector State of Industry Report 2025, highlighting that electricity prices have become unaffordable due to taxes, duties, and surcharges.

According to the report, during the fiscal year 2023-24, power distribution companies (DISCOs) recorded losses of 18.31%, significantly above NEPRA’s approved loss threshold of 11.77%. These losses caused circular debt to rise by an additional PKR 27.6 billion within a year.

The report further stated that the recovery rate during the year stood at 92.44%. Low collection rates contributed to an increase of PKR 31.45 billion in circular debt, with total dues of DISCOs, including K-Electric, surpassing PKR 2.32 trillion.

NEPRA also reported that the country’s total electricity generation capacity is 45,888 megawatts, but only 33.88% of the available electricity was utilized over the year. Consumers paid for an additional 6.12% of unused energy, while overall electricity sales saw a significant decline during FY 2023-24.

The report underscores the urgent need for financial and operational reforms in the power sector to stabilize prices and reduce the burden on consumers.