NEPRA likely to slash electricity tariff

Drop is attributed to revised agreements with power generation companies and the shift of captive power plants

05 August 2025
NEPRA likely to slash electricity tariff

Good news for electricity consumers across Pakistan—power bills are likely to get lighter in August. The National Electric Power Regulatory Authority (NEPRA) is expected to approve a Rs0.77 per unit decrease in electricity price, offering some much-needed relief to households already grappling with high inflation.

This anticipated reduction comes under two different heads: the Fourth Quarter Tariff Adjustment (QTA) for FY 2024-25 and the Fuel Price Adjustment (FPA) for June 2025. According to official sources, NEPRA recently conducted public hearings for both adjustments.

The primary reason behind the expected tariff cut is the quarterly tariff adjustment request submitted by distribution companies (DISCOs) to NEPRA. The authority held a hearing on August 4, 2025, and the outcome appears favourable for consumers.

For the fourth quarter of FY 2024-25, NEPRA is expected to approve a negative adjustment of Rs1.89 per unit for the months of August, September, and October. This will translate to a direct reduction in upcoming power bills. Specifically for August, the impact of this adjustment will result in a Rs0.34 per unit reduction.

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The drop is attributed to revised agreements with power generation companies and the shift of captive power plants to the national grid, which reduced electricity production costs and created surplus supply.

Alongside the QTA, NEPRA is also reviewing the fuel price adjustment for June 2025. The Central Power Purchasing Agency (CPPA), on behalf of DISCOs, filed the request on July 16, 2025, and NEPRA held a public hearing on August 3.

As per the hearing, a reduction of Rs0.78 per unit is likely in the FPA for June, which will be reflected in August electricity bills. Consumers already saw a Rs0.50 per unit reduction in July’s bills. So, for August, an additional Rs0.28 per unit decrease in the FPA is expected.

When combined, the fourth-quarter tariff adjustment and the fuel price adjustment are expected to bring a total Rs0.77 per unit reduction in electricity rates, including applicable taxes. This is a small but meaningful step toward easing the financial burden on millions of consumers.