Electricity Prices in Pakistan Likely to Drop Further

In a move that could bring welcome relief to millions of households, electricity prices in Pakistan are expected to drop further in the coming billing cycle.

A combined reduction of Rs. 0.77 per unit is likely to be reflected in consumer bills, driven by ongoing fuel cost and tariff adjustments.

NEPRA Evaluates New Adjustments

The National Electric Power Regulatory Authority (NEPRA) recently held a public hearing on August 4, 2025, to review quarterly and monthly power pricing submissions.

These included the fourth Quarterly Tariff Adjustment (QTA) for the fiscal year 2024–25, submitted by various power distribution companies (DISCOs).

Based on NEPRA’s preliminary findings, a negative adjustment of Rs. 1.89 per unit under the QTA is anticipated.

This change, if approved, will impact electricity bills for August, September, and October 2025, providing consumers with a temporary but much-needed cost break.

According to officials, this expected reduction stems from improved operational efficiencies. Factors such as renegotiated contracts with power producers, increased electricity demand, and the integration of captive power plants into the national grid have contributed to lowering the overall cost of power generation.

Fuel Cost Adjustment for June 2025

Alongside the quarterly review, NEPRA also assessed the Fuel Price Adjustment (FPA) for June 2025, which was submitted by the Central Power Purchasing Agency – Guaranteed (CPPA-G) on July 16.

Following a hearing held on July 3, 2025, regulators are likely to approve a further Rs. 0.78 per unit decrease in fuel cost charges.

A portion of this Rs. 0.50 per unit was already reflected in July’s electricity bills, while the remaining Rs. 0.28 per unit will now be passed on in August.

Together, these adjustments could translate into meaningful short-term relief for electricity users across the country, especially as households continue to grapple with broader inflationary pressures.

While NEPRA has yet to issue a final decision, all signs point toward a reduction in consumer electricity bills starting this month.

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