The National Electric Power Regulatory Authority (NEPRA) has announced a reduction of Rs. 1.71 per unit in electricity prices across the country, including Karachi, for the period from April to June 2025. The decision was outlined in a notification issued by NEPRA following a review of submissions from the federal government and feedback from stakeholders.

Subsidy Through Petroleum Development Levy
NEPRA stated that the Ministry of Energy has opted to use the Petroleum Development Levy (PDL) to provide additional subsidies to electricity consumers of XWDISCOs and K-Electric, excluding lifeline customers. This subsidy will be implemented without altering NEPRA’s determined tariff or the revenue requirements of distribution companies (DISCOs).

“The Authority observed that the Ministry has chosen to use the Petroleum Development Levy (PDL) to give additional subsidies to electricity consumers of XWDISCOs and K-Electric, with the exception of lifeline users, from April 2025 to June 2025,” the notification stated. NEPRA also noted that no objections were raised by stakeholders during the review process.

The federal government had earlier requested NEPRA to approve an increase in tariff difference subsidies. NEPRA held a hearing on April 4, 2025, to review the request. After careful consideration, the authority approved the subsidy, noting that it would not impact NEPRA’s determined tariff as the government plans to fund the subsidy through PDL collections.

“In view thereof, the Authority has no objection to the instant Motion, as it does not impact NEPRA’s determined tariff, since the GOP has decided to provide additional subsidy from the expected collection of PDL,” the notice added.

The approved reduction of Rs. 1.71 per unit will benefit all electricity consumers of XWDISCOs and K-Electric, except lifeline users, during the three-month period. The move is expected to provide relief to consumers amid rising energy costs and inflationary pressures.