The National Electric Power Regulatory Authority (NEPRA) held a hearing on the federal government’s request to introduce a uniform electricity tariff for consumers across Pakistan. The hearing was chaired by NEPRA Chairman Wasim Mukhtar.
The federal government has filed a new consumer-end tariff application along with a proposal to amend the existing electricity tariff notification. It has also sought the implementation of a uniform tariff for K-Electric consumers, for which a revised tariff notification will be issued under Section 31 of the NEPRA Act. Following NEPRA’s approval, the new electricity rates are expected to take effect from January 15.
During the hearing, officials from the Power Division briefed the authority, stating that electricity tariffs for industrial consumers have been reduced by 26 percent. Under the proposal, the industrial tariff has been cut from Rs62.99 per unit to Rs46.31 per unit.
Officials also said cross-subsidy has been reduced from Rs225 billion to Rs102 billion, reflecting a reduction of Rs123 billion.
The Power Division further informed NEPRA that the national average electricity tariff has been reduced from Rs53.04 per unit to Rs42.27 per unit. Tariffs for the agriculture sector have been cut by 16 percent, for commercial consumers by 10 percent, general services by 12 percent, and bulk consumers by 15 percent. Electricity tariffs in Azad Jammu and Kashmir have reportedly been reduced by 46 percent.
Industrial representatives told the authority that electricity prices for industry in China range between 5 and 7 cents per unit, while Pakistani industries are currently paying around 13 cents per unit. They said they were not demanding tariffs as low as 5 cents but urged the government to bring the rate down to at least 9 cents, arguing that industries cannot operate competitively under current tariff levels.
Industrial consumers also called for the elimination of cross-subsidy from industrial tariffs, stating that industries are currently bearing Rs131 billion in cross-subsidy. They argued that cheaper electricity would increase consumption, boost industrial activity, and create jobs, adding that cross-subsidy in electricity pricing has become a political rather than a technical issue.
Power Division officials told the hearing that the government has decided not to increase the average base electricity tariff. They said subsidies have been adjusted to prevent any increase in tariffs, noting that changes in the energy mix since July were a key factor behind the decision. Officials added that consumers across all categories are currently receiving total subsidies amounting to Rs629 billion.
After hearing arguments from all stakeholders, NEPRA concluded the hearing and said it would review the data before issuing a detailed decision. The Power Division requested that the decision be issued within the current billing cycle, and NEPRA assured participants that a ruling would be announced soon.
