The Power Division has filed a petition with the National Electric Power Regulatory Authority (Nepra) seeking a Rs1.15 per unit reduction in electricity tariffs for the fiscal year 2025-26, excluding lifeline consumers, according to a news report.
This reduction would affect all other consumer categories, including protected and non-protected domestic users, commercial, industrial, agricultural, and bulk consumers.
The power regulator has scheduled a public hearing for July 1. If approved, the changes will take effect with the first settlement scheduled for later in July.
The proposed tariff adjustments suggest that for protected consumers in the 1 to 100 unit range, the new tariff would decrease by 9.8% from Rs11.69 to Rs10.54 per unit. Similarly, for the 101 to 200 unit range, the reduction would be 8%, lowering the rate from Rs14.16 to Rs13.01 per unit.
For non-protected consumers, those using more than 200 units, the tariff would decrease by nearly 5%, from Rs23.59 to Rs23.44 per unit for the first 100 units. For commercial, industrial, and agricultural consumers, the reduction will vary between 3% to 4% depending on their respective rates.
The government’s petition also explains the rationale behind the tariff cuts, which include a reduction in subsidy allocations for the power sector in the federal budget. For instance, subsidies for tariff differentials have been cut by 10% to Rs249.14 billion in FY2025-26, down from Rs276 billion in the previous year. Additionally, subsidies for K-Electric and various regions have also seen reductions.
The petition is in line with the National Electricity Policy of 2021, which emphasizes the financial sustainability of the energy sector and efficient tariff structures to ensure liquidity.
The Power Division stated that these adjustments were necessary to meet the revenue requirements set by Nepra while maintaining the socio-economic objectives outlined by the government.
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