Electricity Prices Drop by Rs 1.55 Per Unit for Summer 2025
The summer season has brought good news for electricity consumers, as the government has issued a notification to make electricity cheaper by Rs 1.55 per unit under the Quarterly Tariff Adjustment (QTA). This reduction will be applicable for the third quarter of the financial year 2024-25 (May to July 2025).
This relief in the months of May and June will be in addition to the negative Rs 1.9 per unit reduction of the previous quarter, which will remain in effect until June 2025.
Thus, the total relief reached Rs 6.2 per unit by March 2025, which is for protected consumers, while unprotected consumers have received a benefit of about Rs 5 per unit.
The monthly Fuel Charge Adjustment (FCA) has also been in favour of consumers, with the rate set at Rs 0.28 per unit for May 2025—the lowest since September 2024. It also includes a temporary adjustment of Rs 0.9 that will continue until next month.
As per the current tariff structure, several reliefs have been introduced after March 2025:
QTA for the second quarter: minus Rs 1.9 per unit (April-June)
QTA for the third quarter: minus Rs 1.55 per unit (May-July)
FCA relief: minus Rs 0.9 per unit
FCA for May 2025: Rs 0.28 per unit
There has been no change in the base tariff, surcharges, duties, and taxes.
The tariff has come down significantly compared to the previous year, ranging from 9% to 48% for different consumers.
The per unit relief for protected consumers has reached Rs 8, and for non-protected consumers, Rs 6.
Interestingly, some non-lifeline consumers are now getting cheaper electricity than lifeline consumers, although this difference is temporary and limited in nature.
The major reason for the reduction in capacity charges is the closure of five expensive power plants andthe renewal of contracts with IPPs.
The closure of Neelum Jhelum Power Plant also affected production, which may have an impact on future tariffs.
According to initial estimates, the base tariff for the financial year 2025-26 will either remain at the current level or will be reduced slightly.
There is also a possibility of a reduction in periodic adjustments, as the Power Purchase Price (PPP) is being improved.
Experts are now eyeing the supply of hydel energy, which will play a key role in keeping the price of electricity stable in the coming financial year.
