Islamabad:

The federal government has decided to reduce electricity prices with a proposed cut at RS2 per year. Unit for the second quarter of the financial year 2024-25.

Power distribution companies have already submitted their adjustment requests to the National Electric Power Regulatory Authority (NEPRA) for approval.

If approved, the revised rates will come into force from March 2025, giving consumers a relief that RS52 billion exceeds.

NEPRA is scheduled to hold a public consultation on the case on February 12. The price reduction is reflected in electricity bills for March, April and May.

The quarterly adjustment also applies to K-electric Consumers, although Lifeline consumers are not eligible for relief.

Last week, state-owned Central Power Calk Agency (CPPA) CEO Rehan Akhtar revealed that electricity consumers of all state-owned distribution companies (disco) would only see one 28-paise per year. Unit reduction in fuel costs for February despite an RS1. 04 per Unit Lower costs based on consumption of December 2024.

He explained that Discos’ consumers had already paid a negative fuel tax adjustment (FCA) of 76 paise per year. Unit in January to November consumption and had proposed RS1.04 per unit. Unit for February based on December’s use. As a result, the net reduction would only be 28 paise per year. Unit.

Meanwhile, the Pakistani government failed to convince the International Monetary Fund (IMF) to approve a reduction in VAT on electricity bills.

Sources revealed that the IMF rejected a request from Pakistan’s Ministry of Energy, which had sought tax relief to facilitate the financial burden of consumers.