Govt.decides to lower tariff by Rs 1.71kWh for fourth quarter

ISLAMABAD: The government has decided to increase Tariff Differential Subsidy (TDS) by Rs 1.71 per unit except lifeline consumers for fourth quarter (April –June 2025) for the consumers of Discos and K-Electric.
According to Power Division, the federal cabinet in its meeting held on March 26, approved the proposal of increase in TDS.
Power Division says that NEPRA’s determinations of July 11 and 13, 2024 notified by the Federal Government according to which the national average rate for FY 2024-25 determined by NEPRA is Rs. 35.50/kWh, against which the Government notified national average tariff is Rs. 32.99/kWh (October 2024 and onwards), bridging the gap through Tariff Differential Subsidy.
Further, the Government has also maintained a uniform consumer-end tariff for K-Electric through incorporation of TDS for K-Electric consumers.
In line with the Government’s efforts to reduce consumer-end tariffs and improve demand, the Federal Government has decided to increase the tariff differential subsidy for electricity consumers for April to June FY 2025. The per-unit additional TDS for all consumers of Discos and K-Electric (except lifeline domestic), is estimated at Rs. 1.71/kWh for April — June 2025.
The matter was considered and approved by the Cabinet on March 26, 2025 and it was decided that the same be submitted to the Authority for consideration and approval in terms of Section 31 of the Act. 4. Once considered and approved by NEPRA, the same will lead to notification by the Federal Government by modification, to the extent of the subsidy relief specified above, of existing rates notified via S.R.O 1039 (l)/2024 dated July 14th 2024, read in conformity with earlier issued applicable notifications. Ends