Massive Relief for Electricity Consumers! Govt Likely to Reduce Electricity Prices by Rs. 10 Per Unit

Friday the federal government released a changed plan to decrease baseline electricity rates by between Rs 8 and Rs 10 per unit.

The new strategy will decrease circular debt by fixing the overall debt amount.

The plan creates extra money through a debt reduction of Rs130 billion which the government then uses to cut electricity costs. The industry expects its future financial operations in power generation will become more profitable.

The international financial institution will launch its examination in Pakistan during the next month according to details. The government will show their proposal to IMF personnel when they come to Pakistan next month.

According to records the IMF disapproved of lowering taxes to reduce electricity costs before. The new program decreases the basic rate of electricity by between Rs8 and Rs10 per unit.

Consumers who purchase electricity through all Disco companies will get an electricity rate discount of Rs2 per unit for January 2025 because of fuel price changes. KE electricity consumers did not receive the benefit although other customers benefited from this price decrease according to information revealed on February 27th.

Energy price swings for power plants caused the price decrease. The Central Power Purchasing Agency Guarantee Limited asked CPPA-G for Rs2 per unit less electricity payment in January 2025 under the Fuel Charges Adjustment system.

On February 27th 2025 NEPRA would lead a public session to assess Ex-WAPDA Distribution Companies (XWDISCOs) proposals.

Because of lower actual fuel costs in January 2025 CPPA-G requested the price reduction.

The energy suppliers used RLNG together with hydropower and nuclear power as main sources in January with minor contributions from coal, furnace oil and renewable energy.

The power distribution companies received 7,816 GWh of energy while paying Rs11.008 per unit on average for their fuel costs which came in at Rs2 cheaper than the established amount.

Electrical power users expected relief from high rates if the authorities approved this rate cut.

After the public hearing NEPRA will make its last determination and accept formal comments from participants and customers