ISLAMABAD – The Power Division has announced the implementation of new electricity tariffs starting from July 2024. Most consumers will see a slight increase in their monthly bills due to the updated tariffs, with the government providing a substantial subsidy of Rs440 billion to mitigate the impact.
In a statement, the Power Division detailed that for the 16.8 million (58%) poorer domestic consumers, the increase will be less than 2%. In contrast, the relatively wealthier 42% of consumers will see an average increase of 9%.
Despite the immediate increases, the Power Division expressed optimism that electricity rates will decrease as the economy improves. The announcement indicated that by January 2025, electricity rates for all consumers are expected to be, on average, 3% lower than in June 2024.
Given that 75% of the power sector’s costs are fixed, the introduction of fixed charges was deemed necessary. Additionally, to promote the country’s industry, a burden of PKR 150 billion has been reduced from the industrial sector.
Following a hearing by the National Electric Power Regulatory Authority (NEPRA), an official notification of the new electricity prices will be issued.
