The Power Division has announced the introduction of revised electricity tariffs starting from July 2024.
According to the division’s statement, most consumers will experience a slight increase in their monthly bills due to these updated tariffs. To offset this impact, the government will provide a subsidy amounting to Rs440 billion.
The statement specified that for the 16.8 million (58%) lower-income domestic consumers, the increase will be less than 2%. In contrast, the relatively wealthier 42% of consumers will face an average increase of 9%.
Despite these adjustments, the Power Division remains optimistic that electricity rates will decrease as economic conditions improve.
The announcement also mentioned that by January 2025, electricity rates for all consumers are projected to be, on average, 3% lower than they were in June 2024.
Given that a significant portion (75%) of the power sector’s expenses are fixed, the introduction of fixed charges was deemed necessary.
Furthermore, in a bid to support the country’s industry, a burden of PKR 150 billion has been alleviated from the industrial sector.
The Power Division confirmed that an official notification detailing the new electricity prices will be issued following a hearing conducted by NEPRA.