Electricity Prices in Pakistan Likely to Drop Further

Electricity consumers across the country may soon receive another financial relief, as a further reduction of Rs. 0.77 per unit (inclusive of taxes) in power tariffs is expected in the upcoming billing cycle. The anticipated relief comes under the heads of Quarterly Tariff Adjustment (QTA) and Fuel Price Adjustment (FPA). According to NEPRA, the fourth quarterly adjustment for the fiscal year 2024–25 was submitted by power distribution companies (DISCOs), to the National Electric Power Regulatory Authority (NEPRA), which held a public hearing on August 4, 2025. Based on the hearing, NEPRA is likely to approve a negative adjustment of Rs. 1.89 per unit, which will be reflected in electricity bills for the months of August, September, and October. This expected reduction is primarily due to revised agreements with power generation companies, increased power demand, and the integration of captive power plants into the national grid—resulting in lower overall production costs. Consequently, a reduction of Rs. 0.34 per unit under this head is expected to appear in August’s bills. Simultaneously, for June 2025’s fuel cost adjustment, the Central Power Purchasing Agency – Guaranteed (CPPA-G) submitted its request to NEPRA on July 16. A hearing was conducted on July 3, 2025, and according to preliminary assessments, a further reduction of Rs 0.78 per unit is expected to be applied to August bills. This comes after consumers had already received a Rs. 0.50 per unit relief in their July bills. The remaining Rs 0.28 per unit will now be adjusted in August.