New electricity tariffs: How much will your bill increase?

The Power Division asserted a decrease in electricity rates once the economy improves

The Power Division has announced the implementation of new electricity tariffs starting from July 2024.

According to the division's statement, most consumers will see a slight increase in their monthly bills due to the updated tariffs. To mitigate the impact on consumers, the government will provide a subsidy of Rs440 billion.

The statement detailed that for the 16.8 million (58%) poorer domestic consumers, the increase will be less than 2%. In contrast, the relatively wealthier 42% of consumers will see an average increase of 9%.

The Power Division, however, expressed optimism that electricity rates will decrease as the economy improves.

The announcement indicated that by January 2025, electricity rates for all consumers are expected to be, on average, 3% lower than in June 2024.

Given that 75% of the power sector's costs are fixed, the introduction of fixed charges was deemed necessary.

Additionally, to promote the country's industry, a burden of PKR 150 billion has been reduced from the industrial sector.

The Power Division stated that following a hearing by NEPRA, an official notification of the new electricity prices will be issued.