Govt slashes electricity rates on excess consumption by Rs15 per unit

• Agricultural consumer using 100 units to get relief of Rs7 per unit.
• Industrial user with 1,000 units to get power at lower rate by Rs5.
• New rates apply to excess consumption compared to previous year.

ISLAMABAD: In a move aimed at promoting industrial and agricultural development via relief in utility bills, the government has slashed the electricity rates on excess consumption by around Rs15 per unit for industries and the agriculture sector.

As per the government's request for a concessional rate approved by the National Electric Power Regulatory Authority (Nepra), industries and the agricultural sector will be charged Rs22.98 per unit for excess use of electricity compared to the previous rate of Rs34 and Rs38 per unit, respectively.

The new rates apply to the excess consumption by consumers in both sectors compared to that of the previous year.

If an agricultural consumer had previously consumed 100 units, he will benefit from a reduction of Rs7 per unit on the additional 100 units of electricity consumed.

Meanwhile, an industrial consumer who was previously using 1,000 units, will now benefit from around a Rs5 per unit reduction for the additional 1,000 units consumed.

Welcoming the Nepra's decision, the Power Division has commenced taking measures to slash the electricity rates regarding the industrial package, which will not affect domestic and commercial consumers.

"The [relief] package will promote production activities and provide additional employment opportunities," said Federal Minister for Power Awais Leghari.

Noting that the industrial sector will be able to plan better for the future with the three-year package, Leghari said that greenfield industries, including data centres and crypto mining operations, will also benefit from the reduction in electricity prices.

The latest changes in the utility rates come as the government, as reported by The News in October, was working on introducing a substantial electricity tariff relief package for the industrial and agricultural sectors.

Before today's notification issued by the Nepra, the industrial consumers were charged Rs34 per unit, while agricultural users paid Rs38 per unit. Although industrial tariffs are typically adjusted through tax filings, the upfront cost remains a significant burden on operational expenses.

Contrastingly, the publication last month reported that Pakistani households and industries may see electricity bills climb next year as the country's power regulator reviewed proposal to raise the national power purchase price, a move that could push energy costs higher across the board.

The Central Power Purchasing Agency (CPPA), appearing before the Nepra, had proposed setting the national power purchase price for fiscal year 2026 between Rs25.69 and Rs26.69 per unit.

The benchmark rate is central to determining the tariffs eventually paid by consumers nationwide.