Authorities is ready to announce an electrical energy tariff discount of Rs8 per unit, with Prime Minister Shehbaz Sharif anticipated to make the official announcement on March 23 following approval from the Worldwide Financial Fund (IMF), Categorical Information reported.
In line with sources, the Ministry of Finance and Energy Division are exploring further measures to additional cut back electrical energy charges by Rs2 per unit. A ultimate determination will likely be made earlier than the announcement.
The discount, efficient from April 1, 2025, will mirror in client payments from Could. Of the Rs8 per unit lower, Rs4.73 per unit will likely be a everlasting adjustment.
The tariff adjustment outcomes from a number of measures, together with the cancellation of agreements with six Impartial Energy Producers (IPPs), revising contracts with 16 IPPs below a “take-and-pay” mannequin, shifting bagasse energy vegetation’ forex from the US greenback to Pakistani rupees, and decreasing the return on fairness (ROE) for presidency energy vegetation (GPPs) to 13%, with the greenback price mounted at Rs168.
Officers famous that the tariff discount calculations additionally account for the affect of decrease oil costs within the international market since March 16, 2025. Sustaining present oil costs is anticipated to save lots of roughly Rs168 billion, permitting a discount of Rs1.30 per unit in energy tariffs.
The IMF has agreed to approve this reduction, acknowledging the federal government’s determination to freeze oil costs for 3 months. If worldwide oil costs drop additional, the monetary affect may attain Rs250 billion. Nonetheless, the Rs1.30 per unit reduction will solely be obtainable for one month.
The federal government goals to make Rs6 per unit of the Rs8 discount a everlasting adjustment. Moreover, sources point out that the Rs35 PTV charge included in electrical energy payments could also be eliminated beginning in July 2025.
For the fiscal 12 months 2026 finances, the federal government plans to allocate funds to maintain PTV operations with out counting on electrical energy invoice collections.