Electricity Tariff Likely to Drop in Pakistan
ISLAMABAD: In a major relief for consumers, Pakistan’s electricity tariff is likely to decrease in the upcoming billing cycle as fuel prices and generation costs continue to decline. According to official sources, the National Electric Power Regulatory Authority (NEPRA) is reviewing proposals that may result in a significant reduction in power tariffs under the monthly fuel cost adjustment (FCA).
Why Electricity Prices May Fall
Energy sector insiders say the reduction is expected due to:
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Lower global fuel prices, including furnace oil and LNG
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Improved hydel power generation, reducing dependency on expensive imports
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Better distribution efficiency in certain regions
NEPRA is currently assessing the fuel data provided by distribution companies (Discos). A final decision is expected soon and will be applicable to most consumer categories.
Possible Relief for Domestic Consumers
If approved, the tariff cut may apply to millions of domestic electricity users, offering relief amid rising inflation. The adjustment could lower bills by Rs2 to Rs4 per unit, depending on the final calculation submitted by power companies.
A senior official told Faiz.tv:
“Preliminary assessments show a clear downward trend in fuel costs. Consumers should expect good news unless any major changes occur.”
Impact on Businesses and Industry
A decrease in power tariffs would provide positive momentum to small businesses and industries currently struggling with high operational expenses. Analysts believe the tariff reduction may help stabilize production costs and improve market confidence.
Government’s Ongoing Power Sector Reforms
The federal government is also working on long-term reforms, including efforts to control line losses, restructure power companies, and enhance renewable energy production to ensure sustainable pricing over the next few years.
Conclusion
The expected drop in electricity tariffs could bring much-needed relief to households and businesses. NEPRA’s final decision is anticipated within the next few days.
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