Government decides no increase in basic electricity tariff

In a relief for power consumers, the Pakistan government has decided not to raise the average basic electricity tariff, officials said on Monday.

The government has announced that it will not increase electricity tariffs at this time, confirming that adjustments have been made to the existing subsidies. This statement came from the Additional Secretary of Power during a review petition hearing at the National Electric Power Regulatory Authority (NEPRA).

Officials from the Power Division highlighted that the energy mix in Pakistan has changed since July, which has allowed the government to maintain current tariff levels. Consumers across all categories are currently receiving Rs62.9 billion in subsidies, ensuring relief for households and businesses.

Earlier, the Power Division had filed a review petition against NEPRA’s earlier decision to raise the base electricity tariff. The government has also requested NEPRA to apply a uniform tariff for state-run distribution companies as well as K-Electric, aiming to standardize electricity pricing across the country.

Separately, NEPRA officially held the National Grid Company and the Central Power Purchasing Agency (CPPA) responsible for the massive nationwide blackout that occurred on January 8, 2021. The blackout left Pakistan without electricity for nearly 20 hours, and the regulator stated that both organizations failed to restore power in time.

The Power Division’s decision to maintain current tariffs comes as a relief to consumers while the government continues to manage subsidies and monitor electricity generation and distribution. Officials emphasized that the government is closely reviewing energy sector operations to prevent future disruptions and ensure a stable power supply. This approach reflects the administration’s efforts to balance consumer protection with financial sustainability in the energy sector while learning lessons from past failures in the national grid.