ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.75 per unit in electricity tariff under the fourth quarterly adjustment for the fiscal year 2024–25, offering relief worth over Rs53.39 billion to consumers across the country.
The approval came after NEPRA concluded a hearing on the Central Power Purchasing Agency’s (CPPA) request for the quarterly adjustment. However, the final decision will be issued following a detailed review of the submitted data.
The tariff cut will be applicable to all distribution companies (DISCOs), including K-Electric.
Officials informed the authority that Pakistan’s circular debt has dropped significantly—by Rs780 billion—falling from Rs2,300 billion to Rs1,600 billion. This decline includes a Rs200 billion reduction due to better performance by power distribution companies.
However, a Rs18 billion shortfall has emerged due to the closure of the Neelum-Jhelum Hydropower Project.
The meeting was also told that transmission and distribution losses have decreased, while electricity demand among DISCOs has risen by 31 percent. Despite this, NEPRA expressed dissatisfaction with the lack of concrete answers from DISCOs’ CEOs regarding the growth in industrial consumption of electricity.
Officials further stated that the government is working on reforms related to direct and cross subsidies. An inquiry into overbilling by distribution companies has been sent to the Prime Minister, with disciplinary action already taken against several LESCO officers.
Additionally, discussions are underway with provincial governments to abolish electricity duties. So far, two provinces have yet to respond.
