Govt pursues Rs1.71 per unit reduction of electricity price

• The request for the reduction applies to all distribution companies.
• Life’s domestic consumers should not be covered by this adjustment.
• Govt is seeking subsidy for three months to improve electricity demand.

ISLAMABAD: The Federal Government formally made a request to the National Electricity Authority (NEPRA) which seeks a reduction in RS1.71 per unit in electricity prices.

According to the report, the proposed reduction in the power invoice will be implemented by increasing tariff grants.

The request recommends that the reduction in all distribution companies, including K-Electric, apply for the period from April to June 2025.

Nepra has scheduled a hearing on the government’s report on April 4.

According to a document available for Geo NewsThe government has requested the subsidy for three months to improve the demand for electricity. The national interest rate for the FY 2024-25 specified by Nepra was RS35.50/KWH, against which the government notified the national average invoice is RS32.99/KWH for October 2024 and then to bridge the gap through invoices.

It can be noted that the International Monetary Fund (IMF) has approved a reduction of RE1 per unit in electricity invoices, providing relief to all consumers on Thursday.

The relief of invoices, according to IMF officials, will extend to all electricity users and will be funded through revenue from the levy imposed on captive power plants using natural gas.

Growth follows the personnel level (SLA) agreement achieved between the lender and Pakistani authorities based in Washington on the first review of the current 37 -month rescue program.

The lender has clarified that this measure aims to compensate for financial pressure while maintaining fiscal stability.

It is advisable to know that even independent electricity producers (IPPS) were offered to reduce electricity invoices by the R0.50 per unit and resign from RS11 billions to overdue payment burdens – provided that the government withdraws all the procedures.

In the meantime, the government is also working to finalize negotiations with 75 more electricity producers – mainly solar and wind – by the end of April or May, after completing 29 IPP talks that would save RS3,498 trillion on future payments.