Govt plans to reduce electricity values ​​by up to RS10 per unit

The federal government has revealed a revised plan to reduce the basic tariff from Rs 8 to Rs 10 per unit, Express News said Friday, citing sources.

The plan aims to address the issue of circular debt, which will be reduced by reducing the amount of debt.

According to this plan, the reduction in repayments of debit billions of RS will create economic space and savings will be used to reduce electricity prices. The move is also expected to help reduce continued economic losses in the electricity sector.

Sources show that the IMF review will visit Pakistan early next month. During this visit, the government plans to present the proposal to the IMF mission.

However, it is worth noting that the IMF had previously rejected a proposal to reduce taxes to reduce electricity prices. According to the new plan, the basic invoice will be reduced by RS8 to 10 per unit.

Meanwhile, consumers of all Energy Distribution Companies (DISCOS) were set Get relief up to RS2 per unit in electricity rates for January 2025, thanks to fuel adjustment. However, K-Electric (KE) consumers were excluded from this reduction, appeared yesterday.

The reduction came as a result of fluctuations in energy prices for power plants. The Central Power Procurement Organization guarantees Limited (CPPA-G) requested RS2 per unit reduction of electricity loads for January 2025 as part of the Fuel Charges (FCA) adjustment.

Nepra had scheduled a public hearing on February 27, 2025, to review the proposal for EX-WAPDA (XWDISCOS).

CPPA-G explained that the actual fuel costs in January 2025 was lower than reporting fuel charges, which justified the cut of prices.

The production mixture for the month included hydroelectricity, nuclear power and refreshed liquefied natural gas (RLNG), with smaller shares of carbon, oven and renewable energy.

The total energy delivered to discs was 7,816 GWh, with an average fuel cost of RS11.008 per unit, which was RS2 lower than the reference costs.

If approved, the reduction is expected to provide relief amid constant concerns about high electricity tariffs.

The final decision of Nepra would follow the public hearing, allowing stakeholders and consumers to object or comments.