A long-awaited relief is coming for millions of electricity consumers in Pakistan. NEPRA (National Electric Power Regulatory Authority) has approved a reduction in basic unit rates of electricity by Rs 1.14 for the 1st of July, 2025, herein below. This new rate will be across the board to all the electricity distribution companies of Pakistan, including PESCO, LESCO, MEPCO, and K-Electric.
After this cut, the national average base tariff will now be reduced from Rs 32.73/unit to Rs 31.59/unit. These rates are applicable for every category of consumer, whether you are a home user, running a business, or working in agriculture.
Is There Any Change in Residential Slabs?
The table given below compares the new and old rates of residential slabs:
| Category | Units/month | Old Rate (Rs/unit) | New Rate (Rs/unit) | Difference |
|---|---|---|---|---|
| Lifeline | 0–50 | 3.95 | 3.95 | 0.00 |
| Lifeline | 51–100 | 7.74 | 7.74 | 0.00 |
| Protected Users | 1–100 | 11.69 | 10.54 | 1.15 |
| Protected Users | 101–200 | 14.16 | 13.01 | 1.15 |
| Non-Protected Users | 1–100 | 23.59 | 22.44 | 1.15 |
| Non-Protected Users | 101–200 | 30.06 | 28.91 | 1.15 |
| Non-Protected Users | 201–300 | 34.25 | 33.10 | 1.15 |
| TOU (Time of Use) | >300 | 42.93 | 41.78 | 1.15 |
Note: Rates for Lifeline users (0–100 units) will remain the same; there is no change.
Commercial, Industrial, and Agricultural Rates Have Also Been Cut
Not just for residential, rates have also been reduced for commercial and industrial users:
| Category | Purana Rate (Rs/unit) | New Rate (Rs/unit) |
|---|---|---|
| Commercial | 46.58 | 45.43 |
| General Services | 44.32 | 43.17 |
| Industrial | 34.63 | 33.48 |
| Agricultural | 31.90 | 30.75 |
| Bulk Consumers | 42.91 | 41.76 |
This cut is also a good signal for small businesses, industries, and farmers, who were worried about power costs.
Why Did NEPRA Reduce Tariffs?
According to NEPRA, this reduction was possible due to some key reasons:
- Stability of the Rupee—The rupee has improved in its position against the dollar, which has reduced fuel import costs.
- Reduction in Global Fuel Prices—Prices of LNG, coal, and oil have come down in the international market.
- Improvement in IPP Agreements – Contracts on new terms with IPPs have reduced capacity payments.
- Better Performance of DISCOs – Losses in electricity distribution have reduced, and recovery has improved.
All these reasons together are reducing the cost of electricity generation, the benefit of which is now reaching direct consumers.
How Much Profit Will You Make?
- If you use 250 units per month, you can earn a profit of approximately Rs 285/month.
- Domestic users using 150 units can get a bill of up to Rs 170.
- A small business using 500 units will get a bill of up to Rs 575.
- Industries will get relief of thousands of rupees monthly.
Important Points You Should Know
- Only the base tariff has been reduced—additional charges like Fuel Price Adjustment (FPA), GST, duty, and surcharges will still be applicable.
- Actual Impact in Bill will Vary – Your final bill may be different according to FPA and usage.
- No Change in Lifeline Slabs – People consuming less than 100 units will remain on subsidized rates as before.
Reaction of the Business Community
The industrial and commercial community says that this reduction is not enough. They say that:
- The tariff structure and complicated billing should be simplified.
- Surcharges and hidden charges also need to be cut.
- Transparency will have to be brought to the power sector in the long term.
But this reduction is being considered a positive start.
What Can You Do?
- Check the latest bill.
- Monitor usage – try to stay within protected slabs so that you get the lowest rates.
- Keep an eye on FPA and other charges – it is important to be aware of the adjustments every month.
Final Thoughts
NEPRA’s Rs 1.14 per unit cut is a small but meaningful relief. In today’s times of inflation, every penny is important. If the government cuts taxes and surcharges in the future, it can provide even bigger relief.
If you are a PESCO user, the impact of this new tariff will be visible in your bill from July 2025.
Use our PESCO Online Bill Tool to view the latest bill:
https://pescobill.com.pk