Cut in power base tariffs by Rs2 per unit likely as fuel costs drop

ISLAMABAD: Pakistan’s electricity watchdog may slash base power tariffs by over Rs2 per unit in the next fiscal year starting from July 2025, offering consumers potential relief of up to Rs400 billion, as energy cost forecasts drop and demand rebounds, regulators said on Thursday.

The National Electric Power Regulatory Authority (Nepra), in a public hearing, led by Chairman Waseem Mukhtar, reviewed the Power Division’s projections for 2025-26, which estimate the power purchase price will fall to as low as Rs24.75 per unit from the current Rs27. The Ministry of Energy anticipates this cut — driven by softer fuel prices and improved operational efficiencies — could trigger a 2.8 per cent to 5pc jump in power consumption.

At the core of the case are assumptions tied to global commodity prices, inflation, and currency depreciation. The government projects the average per-unit consumer cost may slide to Rs6.8-Rs8.1, even as total fuel costs could climb as high as Rs1.28 trillion depending on macroeconomic variables. The rupee is expected to average around 300 per US dollar next year. Officials countered that April saw a 28pc demand surge, attributed to recent tariff reductions that lured industries back to the grid. “If prices stay low and stable, demand will continue climbing,” they said, pointing to the IMF’s 3.6pc GDP growth projection for 2026.