The government is reducing electricity rates on excess consumption by Rs 15 per unit

• Agricultural consumer using 100 units to get relief of Rs 7 per unit.
• Industrial user with 1,000 units to feed at a lower rate of Rs.5.
• New rates apply to excess consumption compared to the previous year.

ISLAMABAD: In a move aimed at promoting industrial and rural development through relief in utility bills, the government has reduced electricity rates on excess consumption by around Rs 15 per unit for industries and agriculture sector.

As per the government’s demand for a reduced rate approved by the National Electricity Regulatory Authority (Nepra), industries and the agriculture sector will be charged Rs 22.98 per unit for excess electricity usage compared to the earlier rate of Rs 34 and Rs 38 per unit, respectively.

The new rates apply to excess consumption by consumers in both sectors over the previous year.

If a rural consumer had previously consumed 100 units, he would benefit from a reduction of Rs 7 per unit for the additional 100 units of electricity consumed.

Meanwhile, an industrial consumer who used 1,000 units earlier, will now benefit from a reduction of about Rs 5 per unit for the additional 1,000 units consumed.

Welcoming Nepra’s decision, the Electricity Directorate has started taking steps to reduce the electricity prices related to the industrial package, which will not affect the residential and commercial consumers.

“THE [relief] The package will promote productive activities and provide additional employment opportunities,” said Federal Minister for Power Awais Leghari.

Noting that the industrial sector will be able to plan better for the future with the three-year package, Leghari said that greenfield industries, including data centers and cryptocurrency mining operations, will also benefit from the reduction in electricity prices.

The latest changes to utility rates come as the government says The News in October, it was working to introduce a package of substantial relief in electricity tariffs for the industrial and agricultural sectors.

Before today’s notification issued by Nepra, industrial consumers were charged Rs 34 per unit while rural users paid Rs 38 per unit. Although industrial tariffs are usually adjusted through tax returns, the initial cost remains a significant burden on operating expenses.

Instead, the publication last month said Pakistani households and industries could see their electricity bills rise next year as the country’s regulator considered a proposal to raise the national electricity purchase price, a move that could push energy costs higher.

The Central Power Purchase Authority (CPPA), appearing before Nepra, had proposed to fix the national power purchase price for the financial year 2026 between Rs 25.69 and Rs 26.69 per unit.

The reference rate is central to determining the tariffs ultimately paid by consumers at national level.