The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in the base electricity tariff by Rs. 1.49 per unit, bringing it down to Rs. 34.01 per unit for the fiscal year 2025-26, compared to Rs. 35.50 per unit in FY25.

This tariff cut is attributed to decreased capacity payments following successful renegotiations with Independent Power Producers (IPPs), lower energy prices, and a projected 2.8 percent increase in demand, as reported by a national daily.

NEPRA has approved a revenue requirement of Rs. 3.52 trillion for ex-WAPDA distribution companies (XWDiscos), which includes Rs. 3.07 trillion for the power purchase price (PPP) and Rs. 454 billion for distribution margins and losses.

Last year, the government raised the base tariff by Rs. 5.72 per unit, making this year’s reduction a welcome relief for consumers and businesses alike.