Electricity Tariffs May Drop by 65 Paisas Per Unit in Pakistan

There is a strong possibility that electricity prices will decrease by sixty-five paisas per unit for consumers of government-owned power distribution companies. According to reports, the reduction is being considered under the monthly fuel cost adjustment for June. According to a request submitted by the  CPPA to NEPRA, the regulatory authority will conduct a hearing on the matter tomorrow. The proposal suggests a reduction in electricity prices due to lower generation costs observed in June. As per the request, over 13.31 billion units of electricity were generated during June, with the average cost of generation recorded at Rs 7.68 per unit. In comparison, the reference cost for the same period was set at Rs 8.33 per unit, which has opened the window for a possible relief in electricity tariffs. A significant reason for the drop in production cost is the increased contribution of hydropower, which accounted for 39 percent of the total electricity generation during June. The application also states that 20% of electricity was generated using a combination of local and imported coal, while 16 percent came from imported RLNG (Regasified Liquefied Natural Gas). If NEPRA approves the request, electricity prices will effectively become cheaper for millions of consumers already facing economic challenges. The final decision is expected following tomorrow’s public hearing. Earlier, the  NEPRA announced a reduction in electricity prices under the monthly fuel adjustment. According to a notification issued here, K-Electric consumers will benefit from a decrease of Rs 4.03 per unit, while the rest of the country will see a reduction of 5 paisas per unit. The reduction, part of the monthly fuel adjustment, will be reflected in July electricity bills. The price cut for KE consumers is based on the April 2025 monthly adjustment, while the adjustment for May 2025 has lowered electricity rates across the remaining regions of Pakistan.