Govt to raise electricity tariff in January 2025 amid low production cost

Federal government is reportedly indulged in rebasing national tariff regime for 2025
An undated image. — Unsplash
An undated image. — Unsplash

While the government of Pakistan is currently adjusting the peak and off-peak timings for electricity consumption, it's also expected to increase power tariffs by Rs0.51 per unit for January 2025. 

The federal government is also indulged in rebasing the national tariff regime for the new year, as noted by ProPakistani on Wednesday. 

The anticipated surge in electricity tariffs comes despite reports pointing to power generation costs remaining below expectations, making production cheaper than during the peak summer. 

The publication also noted that the Central Power Purchasing Agency (CPPA) proposed to the National Electric Power Regulatory Authority (NEPRA) a negative fuel cost adjustment (FCA) of Rs0.63 per unit for November. 

If approved, this FCA would replace the Rs1.14 per unit negative FCA applied in December, leading to an increment of Rs0.51 per unit in electricity rates for January. 

This was disclosed in a meeting presided by NEPRA Chairman Waseem Mukhtar, wherein shortcomings of power companies were criticised alongside an eight-month-long delay in Lahore-North grid projects and underuse of the Matiari-Lahore Transmission Line.