NEPRA's Big Decision: NEPRA Reduces Electricity Unit Rate by Rs 1.14

The storm of inflation in Pakistan is creating problems for the people day by day. In such a situation, NEPRA (National Electric Power Regulatory Authority) has taken an important and relieving decision and has announced Rs 1.14 per unit electricity subsidy. This decision has come into effect from 1 July 2025 and will apply to all electric supply companies (DISCOs).

This reduction has been made in the base tariff which represents the basic rate of each unit. This means that there will be a difference in the actual bill, but this cut can become an important relief for people irrespective of FPA and taxes. This step of NEPRA has come as a ray of new hope in the times of inflation.

What is the new tariff? – Comparison of old and new tariffs

Earlier the national average tariff was Rs 32.73 per unit, now it has been reduced to Rs 31.59 per unit. This is a noticeable change, especially for those people who consume 300-500 units every month.

These rates have been adjusted in different categories in the following manner:

• Domestic non-protected users (101–300 units): reduction of Rs 1.15 per unit
• Commercial category: relief of Rs 1.14 per unit
• Industrial and agricultural sectors: They too have benefited from the rate cut

This is not just a matter of numbers, but it is proof that the government has prioritized common consumers while feeling the pressure of the public.

Who will benefit? – Every Consumer should be benefited

This relief is not limited to selected areas only, but is for customers of all electricity companies like PESCO, LESCO, MEPCO, FESCO, HESCO, and K-Electric. If you are a domestic, commercial or industrial user, you will benefit from this cut.

But there is one category which will not be affected by this – Lifeline users (0–100 units). They are already taking electricity at subsidized rates, so their rates will not change. But apart from this, all the people who fall in average or high usage will get special relief.

This decision is for every category – from small shops to factories, all will be suitable.

How much difference will be there in the monthly bill?

Now the question is how much difference will be there in the actual bill? It is important for common consumers to understand that the amount of reduction of Rs 1.14 per unit depends on the total bill and not on how many units you use.

Here are some examples:

• If you use 250 units, you can save up to Rs 285
• In case of 500 units, this saving can go up to Rs 570-580
• For small businesses, this reduction can save hundreds of rupees monthly
• In industrial scale usage, this saving can be in lakhs

This is just the difference in base tariff. The rest of the elements like FPA, taxes and duties have different meanings, but the overall bill will definitely be less.

Why did the price of electricity decrease?

People often ask why NEPRA suddenly gave such a big relief in the price of electricity. There are some valid reasons for this:

• Fuel Price Fall: The price of oil and gas has fallen in the international market, which directly affected the power generation cost.
• Improvement of Pakistani Rupee: The stability of Rupee against Dollar reduced the import cost.
• Renegotiation of Contracts of Independent Power Producers (IPPs): The government renegotiated some expensive contracts which reduced the capacity payments.

All these factors together reduce the actual cost of electricity, the benefit of which has now reached the public.

What can you do? – Save electricity, save money

This rate cut of NEPRA is a relief, but if you want real savings then it is necessary to change some habits:

• Use energy-efficient appliances (LED lights, inverter ACs)
• Use solar lights during the day
• Use only those rooms in the house
• Use the power switch where necessary

In today's times, electricity is not just a necessity, it is an expensive resource which should be used wisely.

This cut of Rs 1.14 per unit by NEPRA is a positive development which has brought some relief to the people trapped in the clutches of inflation. But real relief is possible only when people control electricity consumption and the government ensures a transparent billing system.

If you want your bill to be reduced, then consider not only NEPRA's decisions but also your own usage. This blog post can become a roadmap for you - save electricity, save money!