ISLAMABAD – The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.50 per unit in the base electricity tariff for the 2025–26 fiscal year. This adjustment aims to ease the financial burden on households and businesses across Pakistan, including Karachi.
The base tariff is being lowered from Rs35.50 to Rs34.00 per unit, effective July 1, 2025. NEPRA has communicated its decision to the federal government, marking a noteworthy drop in consumer rates after a period of rising energy prices.
To implement this change, the Power Division will present a summary to the federal cabinet. This step is essential to update subsidy mechanisms and ensure uniform electricity rates across all provinces, reducing regional disparities in pricing.
In addition to rate revisions, NEPRA has sanctioned a Rs3.52 trillion revenue requirement for distributing companies next year. This includes Rs3.066 trillion allocated for bulk electricity procurement and Rs454 billion earmarked to cover distribution companies’ profit-and-loss adjustments.
Also included in the projection are Rs1.94 trillion for capacity payments, system usage charges, and market operation fees. The detailed financial breakdown underscores the need for disciplined spending and efficiency enhancements within the power sector—moderating pressures on both consumers and government budgets.