Electricity Prices Set to Rise Again, What the New Tariff Plan Means for You

Brace yourself, Pakistan! Electricity prices are set to climb yet again, with the National Electric Power Regulatory Authority (NEPRA) approving a Rs. 0.50 per unit hike for September 2025, adding fresh strain on households and businesses already grappling with soaring bills. This increase, though seemingly small, feels like another blow to millions, pushing the average per-unit cost to new heights. With inflation and fuel costs driving this surge.

Why Are Electricity Prices Rising Again?

On August 15, 2025, NEPRA notified a Rs. 0.50 per unit increase as part of a Fuel Cost Adjustment (FCA) for September 2025, citing rising global oil prices and rupee depreciation, per brecorder .com. Despite a Rs. 7.41 per unit cut in April 2025, the new hike reverses some relief, bringing the average domestic tariff to Rs. 35–65 per unit, depending on consumption slabs, per solarpanelmarket.pk. Key reasons include:

• Fuel Price Surge: Global oil prices rose 5% in July 2025, impacting Pakistan’s oil-based power plants, per samaa .tv.
• IMF Conditions: Debt-recovery surcharges and tariff rebasing tied to IMF agreements add pressure, per solarpanelpriceinpakistan.pk.
• Circular Debt: Pakistan’s Rs. 2.1 trillion circular debt forces NEPRA to adjust tariffs to stabilize the energy sector, per profit.pakistantoday.com.pk.
• Peak Demand: Summer AC usage spiked demand by 10%, triggering higher rates, per www.dawn.com.

This hike, though modest, compounds the burden on consumers, with bills for 300-unit households rising by Rs. 150–200 monthly.

Impact on Households and Businesses

The Rs. 0.50 per unit increase hits hard across Pakistan’s 240 million population, especially the middle and lower classes:

• Households: A 300-unit household now faces bills of Rs. 10,500–19,500, up from Rs. 10,350–19,350, per pricesin.pk. Families report cutting essentials like food and education to afford bills, with 40% reducing consumption, per solarwithashfaq.com.
• Businesses: Small industries face 3–5% higher operating costs, reducing profits and forcing layoffs, per sunraysolar.pk. Karachi’s textile sector reported a 7% cost rise in 2025, per news

Current Electricity Tariff Structure (September 2025)

Consumption (Units)	Price per Unit (PKR)	After Rs. 0.50 Hike (PKR)
Up to 50	4–8	4.50–8.50
51–100	12–14	12.50–14.50
101–300	16–18	16.50–18.50
301–700	24–30	24.50–30.50
Above 700	38–62	38.50–62.50

Tips to Manage Rising Electricity Costs

• Monitor Usage: Check meters weekly to stay within lower slabs (under 200 units), saving Rs. 2,000–3,000 monthly, per solarwithashfaq.com.
• Switch to Solar: A 5kW solar system (Rs. 600,000) can cut bills by 80%, with prices dropping to Rs. 29–32 per watt, per solarpanelpriceinpakistan.pk.
• Avoid Peak Hours: Use ACs and heavy appliances from 12 AM–5 AM to avoid Rs. 41–48 peak rates, per propakistani.pk.
• Energy Efficiency: Switch to LED bulbs (saves 50% power) and turn off unused devices, per solarpanelmarket.pk.
• Report Scams: Verify relief schemes via www.nepra.org.pk or call 118.

What’s Next?

While NEPRA’s Rs. 0.50 per unit hike seems small, it adds to Pakistan’s ongoing energy crisis, with 65% of consumers frustrated.