ISLAMABAD: Electricity consumers across Pakistan, including those in Karachi, will benefit from reduced power tariffs of up to 17%, funded primarily through an increased petroleum development levy (PDL) of Rs58 billion, placing the burden on oil consumers.
At a public hearing on Friday, the National Electric Power Regulatory Authority (Nepra) reviewed a government proposal to reduce power tariffs by Rs1.71 per unit for three months (April to June). This reduction, part of the prime minister’s broader relief package, increases the total subsidy allocation to Rs266 billion, potentially rising to Rs324 billion.
To finance this, the government recently raised PDL on petrol and diesel from Rs60 to Rs70 per litre. While this increase affects oil consumers directly, the funds will cross-subsidise electricity users.
Nepra Chairman confirmed that consumers would receive an immediate relief of Rs5.03 per unit, with further cuts to follow in the third-quarter tariff adjustment. The breakdown includes Rs1.9/unit under the tariff differential subsidy, Rs1.71/unit in QTA, and Rs1.36/unit through fuel charge adjustments.
Industrialists welcomed the relief but sought clarity on its duration and effective implementation. Nepra will review submitted data before issuing a final verdict.
Officials clarified that lifeline consumers are excluded from the benefit, and relief depends on macroeconomic stability.
Separately, Nepra approved a Rs3.02/kWh fuel charges adjustment relief for K-Electric (KE) consumers, to be reflected in April 2025 bills.
Story by Zafar Bhutta
