Govt likely to remove the RS35 PTV fee from electricity bills

• Over 40 million users can receive pricing relief.
• Fees produced nearly 16 billion Rs per year for PTV.
• The prime minister is expected to make a statement soon.

Islamabad: In a decision expected to provide relief to millions of electricity users, the federal government is ready to remove the end of the RS35 (PTV) monthly television television (PTV) through electricity bills through electricity bills The news reported.

Prime Minister Shehbaz Sharif is expected to make an official announcement soon, resulting in a long contribution affecting over 40 million home, commercial and industrial energy consumers across the country.

The end, a long source of public discontent, has created approximately RS1.5 billion per month-almost 16 billion Rs per year-for the state broadcasting through automatic reductions from utility accounts.

This step is aimed at reducing the financial burden on the common person and providing real relief to electricity accounts, a senior employee who is familiar with the issue said.

Earlier this week, in a significant move that could reduce the pressure of electricity pricing, the National Regulatory Electricity Authority (NEPRA) reduced the national average energy market price (PPP) to RS25.98 per unit for the financial year 2025-26-down 3.77% (or RS1.02).

According to Nepra’s latest determination, the total national energy market price is set to RS3,342 trillion for FY26. For former WAPDA distribution companies (XWDISCOS), the PPP amounts to RS3,066 trillion or RS26.34 per unit.

Calculation excludes K-Electric share. Nepra’s decision sets the stage for downstream pricing decisions at the end of the consumer in the coming months.

From the total projected PPP for XWDISCOS, RS1.125 trillion is distributed to fuel costs and operating and management variable (O&M), while a heavy RS1.941 trillion-or 63%-is pre-empted for capacity charges, including NTDC, PAK Majari-La. (PVT) Ltd (PMLTC), and CPPA-GAS’S’S MOF. Capacity charges are only estimated at RS6,484/Unit/Month, based on an average monthly maximum demand (MDI) 24,943MW.

On a unit basis, the energy charges for XWDISCOS are estimated at RS9.67/Unit, while the capacity fees compose RS16.67/Unit, resulting in a total of RS26.34/unit before transmission and distribution losses (T&D).

The new PPP is RS1.02/unit smaller than the continuing average RS27/unit, when the total power market cost was in RS3.534 trillion.

The Central Power Market Organization (CPPA-G), in its report in Nepra, described seven PPP scenarios for FY26 based on different demand increases (3-5%), exchange rates (RS280-300/USD) and hydrological flows.

The proposed fuel charges range from Rs8.16/Unit to RS9.19/Unit, while capacity payments under different scenarios are displayed between RS16.04/Unit and RS16.45/Unit – continuing the voltage where the capacity costs dominate the power market costs.

In comparison, for FY24, the capacity fees were Rs16.22/Unit while energy fees were only RS6.73/Unit. The total PPP for 2023-24 was Rs22.95/Unit, underlining an ongoing upward trend in the cost of constant power.