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Electricity Consumers to pay Billions in capacity charges for this fiscal year

Electricity Consumers to pay Billions in capacity charges for this fiscal year

ISLAMABAD: Electricity consumers will continue to face the burden of hefty capacity payments in the new fiscal year starting July 2025, a news source reported.

According to official documents, authorities have estimated capacity payments for the 2025–26 fiscal year at Rs 1,766 billion. This means consumers will pay Rs 17.06 per unit for capacity charges alone.

However, consumers may get slight relief, as capacity payments are expected to drop by Rs 1.34 per unit compared to the previous year.

Official documents also revealed that the revenue requirements for the next fiscal year are projected to decrease from Rs 3,768 billion to Rs 3,521 billion.

The distribution margin is projected to increase from Rs 391 billion to Rs 396 billion. In addition, authorities plan to collect an estimated Rs 174 billion from consumers under the Use of System Charges.

The value of the US dollar for the new fiscal year has also been revised downward, from Rs 300 to Rs 290.

Meanwhile, officials expect the cost of electricity generation to decrease by Rs 1.27 per unit, while they estimate transmission losses at 11.04 percent for the upcoming year.

Last month, the Power Division submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, by implementing a uniform tariff system.

According to reports, NEPRA is scheduled to hear the request on July 1, with the proposed adjustments expected to take effect in the upcoming fiscal year.

As per the proposal, the Power Division aims to reduce electricity prices for domestic users by Rs 1.16 per unit, lowering the maximum tariff from Rs 48.84 to Rs 47.69 per unit. This move is expected to ease the burden on both middle-income households and low-usage consumers.

For protected users consuming up to 100 units, the proposal aims to reduce electricity prices to Rs 10.54 per unit, while those using 101 to 200 units may see a revised rate of Rs 13.01 per unit.

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