Oil consumers are set to mainly finance the recent reduction in electricity stars up to 17% below the Prime Minister’s relief package.

The National Electric Power Regulatory Authority (NEPRA) held a public consultation on Friday to consider the government’s request for a customs reduction of RS1.71 per year. Unit for consumers throughout Pakistan, including Karachi.

It was informed that the total grant had been increased to RS266 billion. After adding RS58.6 billion Currently, the government is delivering RS266 billion in customs differential grants to bridge the gap between actual and notified tariffs, which could increase to RS324 billion with the latest customs proposal.

The government has recently increased PDL from RS60 to RS70 per year. Liters of gasoline and diesel each, but it announced that its influence would be redirected to electricity consumers. Now it is believed that oil consumers will give RS58 billion in additional PDL to across the electricity consumers.

During the consultation, the NEPRA imposed the power department to clear the confusion among consumers, especially the industrial sector.

While hearing a government’s petition about the reduction in RS1.71 per year. Unit Due to additional PDL of RS58.6 billion for three months, NEPRA chairman declared that the work was underway to establish the Prime Minister’s announcement of a power tariff of RS7.69 per year. Unit for industrial consumers and RS7.41 per Unit for domestic consumers who exclude living lines.

He added that consumers would receive an immediate relief of RS5.03 per year. Unit within the next few days, while the remaining relief would be available in the quarterly customs adjustment (QTA) in the third quarter.

Industrialist Aamir Sheikh recognized the customs reduction, but pointed out that there was a discrepancy when Nepra chair quoted a relief on RS5 per year. Unit, while the power department indicated a reduction of RS6.

The division of QTA placement includes RS1.9 per Unit under Customs Differential Recovery, RS1.71 under QTA and RS1.36 under fuel price adjustment (extensive RS0.46 and RS0.90 per unit).

“I hope Nepra will clarify whether the relief from the upcoming QTA will be given to consumers in the current quarter (April-June), which means that two QTA at the same time, or it will be completed now, but will be implemented in the July-September quarter,” he said. “If the next QTA is awarded in this quarter and is around minus RS1 per unit, this clarification would allow us to estimate a net reflection of around RS4 per unit and plant export sales accordingly,” he added.

Arif Bilwani and Tanveer Barry also sought clarifications at several points that were raised during the public consultation.

The proposed decrease in the tariff must be implemented through an increase in customs differential subsidies, where the government is already securing the cabinet’s approval before submitting the request to NEPRA. The relief will apply to all power distribution companies, including K-electric (KE), for three months. However, officials clarified that lifeline consumers would not enjoy the benefit.

According to officials in the power department, the government aims to offset costs through estimated savings of RS58 billion by keeping oil prices stable over the next three months.

Further relief is provided through audits in power purchase agreements, as savings of RS12 billion after negotiations with independent power producers (IPPS) were already included in the recent QTA. The government is also negotiating with banks to handle the circular debt. These conversations are part of a wider strategy to complete a scheme that can cut obligations in the electricity sector.

Officials clarified that the relief for consumers was provided through quarterly adjustments instead of annual redevelopment due to the current financial conditions.

Nepra officials confirmed that relief of RS1.36 per Unit had already been awarded during the adjustment of fuel taxes, and with the proposed reduction of RS1.71, consumers could receive an immediate cumulative relief of RS5.03 to RS5.04 per year. Unit. The authority will review the data submitted and issue a formal decision.

The Power Division -Officers emphasized that the continuation of emergency relief measures would depend on macroeconomic stability, noting that the current financial situation does not allow an annual tariff phase and that was the reason why quarterly adjustments were used. The third -quarter adjustment request is expected to be submitted in the second week of April.

During the hearing, concern was raised over the burden placed on grid -connected consumers due to increasing network connections, which translated into a customs rise of RS1.5 per year. Kilowatt-time (kWh).

In response, NEPRA officials stated that the government was actively considering the question and was soon expected to announce a decision. They added that adjustments can also be introduced during the upcoming customs tasks to ensure justice while protecting network consumers.

RS3.02 Relief for KE consumers

Separately, NEPRA made its decision to KE’s petition to adjust temporary fuel taxes for January 2025, indicating a relief of RS3.02 per year. KWh. This is transferred to consumers in April 2025 bills.

NEPRA preliminary RS2 billion for adjustments due to partial strain, open cycle and degradation curves along with start-up costs according to its decision to generation star riff for the period July 2023 and henceforth from the fuel taxes for January 2025.