The Federal Government has formally requested the National Electric Power Regulatory Authority (NEPRA) to implement a uniform electricity tariff across Pakistan, including Karachi, starting July 1, 2025, Business Recorder reported.

In the upcoming fiscal year, the government has reduced power sector subsidies by 13%, from Rs 1.190 trillion in FY 2024–25 to Rs 1.036 trillion.

The Power Division referenced NEPRA’s latest tariff determination for distribution companies (Discos), issued on June 23, 2025, which lowered the national average tariff to Rs34 per kilowatt-hour (kWh), down from Rs 35.50 per kWh in the previous year.

The government cited the National Electricity Policy 2021, endorsed by the Council of Common Interests (CCI), to support its decision.

According to Clause 5.6.1 of the policy, the financial sustainability of the power sector hinges on recovering the full cost of service where feasible through efficient tariffs.

Also, Clause 5.6.4 further states that government subsidies should be phased out, except for targeted support to lifeline, industrial, or agricultural consumers.

In its motion, the Power Division emphasized its intent to pursue a nationwide uniform tariff for all consumers and regions, in line with socio-economic objectives, budget constraints, and NEPRA’s recommendations.

It urged NEPRA to determine a uniform tariff structure, including quarterly adjustments, for all federally owned Discos.

Under Section 31(4) of the NEPRA Act, the Authority has the legal power to set a uniform tariff for public sector licensees based on consolidated financial data, while also protecting consumer interests.

NEPRA has previously included targeted and cross-subsidies in such uniform tariff decisions, most recently in July 2024.

After reviewing NEPRA’s June 2025 tariff proposals for all consumer categories, the Federal Government decided to invoke Section 31(4) again to ensure a uniform tariff structure nationwide.

The proposed tariff aligns with the government’s economic and social policy and is based on revenue requirements already approved for federal Discos. This proposal was submitted for Cabinet approval on June 28, 2025, and has been forwarded to NEPRA ahead of formal endorsement.

The Power Division clarified that the purpose of tariff rationalization is not to raise federal revenue but to meet constitutional and policy guidelines within the existing revenue requirements of Discos.

NEPRA will be authorized to determine the final uniform tariff under Section 31(7), replacing the rates issued on July 14, 2024.

The government also aims to apply the same end-user tariff to K-Electric consumers as it does to those served by state-owned Discos.

KE’s variable charge will be adjusted to meet its revenue requirements, incorporating both targeted and cross-subsidies. This proposal has also been submitted for Cabinet approval and sent to NEPRA.

The motion was filed under Sections 7 and 31 of the NEPRA Act, along with Rule 17 of the NEPRA Rules, seeking a revised and uniform Schedule of Tariffs for Discos.

A separate motion was filed for K-Electric under Sections 7, 31(4), and 31(7) to modify KE’s variable charges and maintain national tariff parity.

NEPRA is scheduled to hold a public hearing on July 1, 2025, to consider and possibly approve the Federal Government’s proposal for nationwide uniform electricity tariffs.

The NEPRA Act, known as the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, establishes the National Electric Power Regulatory Authority (NEPRA) in Pakistan. Its primary function is to regulate the electricity sector, ensuring efficient and reliable power supply while protecting consumer interests and promoting competition.