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Pakistan Cut Electricity Prices to PKR 25.98 Per Unit for Distribution Companies

admin-augaf by admin-augaf
June 24, 2025
in Budget, Business, Culture, Finance, National, News
Reading Time: 1 min read
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Electricity Prices

Electricity Prices

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Islamabad June 24 2025: National Electric Power Regulatory Authority, NEPRA, has set electricity tariff for distribtion companies at a rate of PKR 25.98 per unit for fiscal year 2025-26, which is PKR 1.02 per unit lower to current rate of PKR 27.0 per unit.

The total Power Purchase Price of XWDXSCOs for the FY 2025-26, (after excluding the share of KE), works out as PKR 3,066.153 billion, which includes PKR l,125.435 billion for fuel & variable O&M cost and PKR 1,940.718 billion as capacity charges including UoSC of NTDC & PMLTC and MoF of CPPA-G.

The capacity charges translate into PKR 6,484/kW/month, based on projected average monthly MDI of 24,943 MW. Thus, the capacity charges works out as around 63 percent of the total projected PPP of XWDISCOs, whereas energy cost is around 37 percent of the total projected PPP.

In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses ofXWDISCOs, capacity charges work out as PKR 16.67/kWh, whereas energy charges are PKR 9.67/kWh, totaling to PKR 26.34/kWh for the FY 2025-26. The national average power purchase price works out as PKR 25.98/kWh. The generation cost is transferred to the DISCOs as per the prescribed mechanism.

NEPRA has determined this tariff based on electricity demand growth of 2.8% and a exchange rate of PKR 290. Inflation is assumed at 8.65 percent while KIBOR is set at 11.0 percent and SOFR at 4.07 percent.

Tags: CommoditiesElectricity pricesPower Generation
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