Govt seeks 25% increase in power tariff for FY25

In an effort to secure a revenue of about Rs4 trillion to fulfill the requirement of power companies in FY25, the government sought about 25 percent hike in electricity tariff from July 1, 2025.

A petition was filed by the Central Power Purchasing Agency (CPPA), seeking Rs4.40 to Rs6.51 unit increase in the overall power purchase price (PPP) for FY25. 

However, the National Electric Power Regulatory Authority (Nepra) has called a public hearing on May 23.

The petition stated that the CPPA estimated that electricity sales are expected to increase next year, with demand growth ranging from 3pc to 5pc. The minimum increase under the statement should be Rs4.40 per unit up to Rs6.50 per unit.

On average, CPPA sought an increase of Rs6.51 or more than 25 percent. 

For the current fiscal year, the base power purchase price approved by the Nepra stands at Rs20.60 per unit, resulting in discos paying Rs23 per unit, and it exceeds Rs29.78 per unit average sale rate for consumers.

The said prices do not include taxes, surcharges and duties that add to the consumer’s tariff.

The estimated cost of electricity is 300 billion more than the current financial year, as the CPPA had estimated Rs3.28 trillion in FY24 for purchasing power.