This move aims to standardize power costs for all consumers through a system of subsidies, surcharges, and inter-company tariff adjustments.
National Electric Power Regulatory (Nepra) is set to hold a public hearing tomorrow, July 1st, to discuss this proposal. The Power Division, the government body overseeing electricity, emphasized that this rationalization isn t about revenue generation but about aligning with constitutional and policy mandates to ensure consistent pricing nationwide.
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To achieve this uniformity, KE s variable charges will be adjusted to match the proposed national tariff, factoring in targeted and cross-subsidies. This decision comes as the government has reduced overall power sector subsidies by 13% for the fiscal year 2025-26, down to Rs1.036 trillion from Rs1.190 trillion.
Specific subsidy cuts include:
A nearly 10% reduction for Inter-Disco tariff differentials.
Significant cuts for agricultural tube wells in Balochistan (from Rs9.5 billion to Rs4 billion).
Over 38% reduction for merged districts of KP (former FATA).
A 31.5% decrease for Azad Jammu and Kashmir (AJK).
K-Electric (KE) subsidies are also set to decrease by over 28% to Rs125 billion.
However, the Pakistan Energy Revolving Account (PERA), which facilitates payments to Chinese power plants, will maintain its Rs48 billion allocation.
The federal government has formally requested Nepra to review and implement these changes, ensuring a revised, uniform schedule of tariffs is notified by July 1, 2025.
