ISLAMABAD : The National Electric Power Regulatory Authority (NEPRA) has reduced the national average electricity tariff for FY 2025–26 by 4.2%, lowering it from Rs 35.50 per unit to Rs 34.00 per unit. This revised tariff will be applicable to all power distribution companies (DISCOs) starting July 1, 2025, under the Multi-Year Tariff (MYT) mechanism.
The revised tariffs are based on each DISCO’s approved revenue requirements, which include the Power Purchase Price (PPP). However, it remains unclear whether the DISCOs or the Government of Pakistan (GoP) will seek a review of NEPRA’s determinations.
The determined average tariffs of different Discos are as follows ;(i) Islamabad Electric Supply Company (IESCO)- average tariff Rs 29.28/kWh, revenue requirement, Rs 340.523 billion, PPP tariff, Rs 23.9851/kWh, total PPP amount Rs 300.896 billion;(ii) Gujranwala Electric Power Company (GEPCO), average tariff Rs 33.82 / kWh, revenue requirement, Rs 380.412 billion, PPP tariff Rs 29.9231 /kWh, total PPP amount Rs 319.942 billion;(iii) Faisalabad Electric Supply Company (FESCO), average tariff Rs 32.69 / kWh, revenue requirement Rs 471. 717 billion, PPP tariff 26.0226/ kWh, total PPP amount Rs 408.406 billion ;(iv) Lahore Electric Supply Company (LESCO) average tariff Rs 31.18/kWh, revenue requirement Rs 737.216 billion, PPP tariff Rs 25.1463/ kWh, total PPP amount Rs 650.996 billion ;(v) Multan Electric Power Company (MEPCO), average Rs 34.68/kWh, revenue requirement, Rs 595.696 billion, PPP tariff Rs 26.5094/kWh, total PPP amount Rs 513.580 billion ;(vi) Peshawar Electric Supply Company (PESCO), average tariff Rs 37.20 /kWh, revenue requirement, Rs 342.268 billion, PPP tariff Rs 26.1682/kWh, total PPP amount Rs 298.213 billion ;(vii) Quetta Electric Supply Company (QESCO), average tariff Rs 41.54/kWh, revenue requirement, Rs 201.644 billion, PPP tariff Rs 29.8509/kWh, total PPP amount Rs 168.115 billion :(viii) Sukkur Electric Supply Company (SEPCO), average tariff Rs 35.63/ kWh, total revenue requirement, Rs 120.739 billion, PPP tariff Rs 27.213/kWh, total PPP amount Rs 110.213 billion ;( ix) Hyderabad Electric Supply Company (HESCO), average tariff Rs 44.36/kWh, revenue requirement, Rs 173.408 billion, PPP tariff Rs 32.6312 /kWh, total PPP amount Rs 173.408 billion ;(x) Tribal Areas Electric Supply Company (TESC), average tariff, Rs 44.93 /kWh, revenue requirement, Rs 61.391 billion, PPP tariff Rs 39.3703/kWh, total PPP amount Rs 59.045 billion ; and (xi) Hazara Electric Supply Company (Hazeco) average tariff, Rs 33.49/kWh, revenue requirement, Rs 74.532 billion, PPP tariff Rs 24.0776/kWh, total PPP amount Rs 63.340 billion.
NEPRA has projected a modest 2.8% growth in electricity demand for the fiscal year 2025-26, significantly lower than the 5% forecast made by the Central Power Purchasing Agency-Guaranteed (CPPA-G). This projection is based on recent trends of stagnant or declining demand, as actual generation data for the last two fiscal years showed either negative or flat growth.
In its latest determination, NEPRA has approved a projected average Power Purchase Price (PPP) of Rs 25.06 per unit for FY 2025-26. This estimate is based on several macroeconomic assumptions, including an exchange rate of Rs 290/USD, low hydrology, US inflation at 2%, KIBOR at 11%, and Pakistan’s inflation at 8.65%.
NEPRA acknowledged that although CPPA-G initially based its forecast on an exchange rate of Rs 280/USD, the Federal Government’s budgetary estimates and prevailing market conditions justify the use of Rs 290/USD. As the majority of power generation costs are dollar-indexed, exchange rate fluctuations have a direct impact on electricity prices.
