NEPRA Proposes Rs1.80/Unit Electricity Cut

Islamabad, August 4, 2025, 10:09 PM PKT — The National Electric Power Regulatory Authority (NEPRA) has signaled a major relief, proposing a Rs1.80 per unit cut in electricity prices under the Quarterly Tariff Adjustment (QTA) for the quarter ending June 2025, potentially unlocking Rs53.393 billion in savings for consumers across Pakistan, as debated in a Monday public hearing at NEPRA headquarters, per official reports. The Central Power Purchasing Agency (CPPA-G), on behalf of ex-WAPDA distribution companies (DISCOs), cited a Rs53.714 billion drop in capacity payments and a Rs662 million gain from improved transmission and distribution (T&D) efficiency, though offset by rises in Operation & Maintenance (O&M) costs (Rs182 million) and Use of System Charges (UoSC) and Market Operation Fees (MoF) (Rs804 million).

The power sector’s circular debt fell Rs780 billion to Rs1,600 billion from Rs2,300 billion last fiscal year, thanks to DISCOs’ Rs200 billion savings, despite a Rs18 billion hit from the Neelum-Jhelum Hydropower Plant closure. Electricity consumption rose 31% among DISCOs (excluding Quetta Electric Supply Company (QESCO), which declined), though NEPRA flagged industrial growth concerns unmet by DISCO CEOs. The government targets direct and cross subsidy reforms, avoiding a separate surcharge on Rs1,275 billion in bank loans for liabilities. If approved, relief will cover all DISCO and K-Electric consumers (excluding lifeline users, prepaid meters, and EV charging stations), with FESCO (Rs15.03 billion), LESCO (Rs12.64 billion), and MEPCO (Rs8.47 billion) seeking the largest refunds, while QESCO’s Rs3.594 billion positive adjustment trimmed the total from Rs56.987 billion. Web context on tariff adjustments shows past delays, while posts found on X reflect hope and skepticism—some welcome relief, others doubt consistency. Critically, the narrative of “consumer relief” may mask underlying inefficiencies—web data hints at persistent debt, and X sentiment suggests distrust in sustained benefits, pointing to ongoing challenges.