ECC Revises Electricity Tariff Timeline to Ease Consumer Burden

The Economic Coordination Committee (ECC) has approved a change in the timeline for annual electricity tariff rebasing, setting January as the adjustment month starting in 2025. The decision, made during a meeting chaired by Finance Minister Senator Muhammad Aurangzeb, aims to address consumer concerns over high electricity bills during summer months caused by overlapping tariff adjustments.

The Power Division highlighted that current practices of applying Fuel Charges Adjustments (FCAs) and Quarterly Tariff Adjustments (QTAs) during peak consumption periods often result in unaffordable bills, public dissatisfaction, and protests. By shifting the timeline to January, the ECC intends to stabilize electricity prices throughout the year and ease financial pressure on consumers.

Policy guidelines were approved for the National Electric Power Regulatory Authority (Nepra) to update its legal and regulatory framework in line with the new schedule. While Nepra noted that the rebasing process starting from July 2025 is already underway, it acknowledged the long-term benefits of this shift and agreed to collaborate with the Power Division for effective implementation.

This adjustment is expected to provide relief to consumers and align tariff adjustments with seasonal consumption patterns for greater affordability.