Power Division signals net relief of 20 paisa per unit as quarterly cut offsets monthly hike

Electricity prices are likely to see a net relief of around 20 paisa per unit in June as a quarterly reduction is expected to offset an increase under the monthly fuel adjustment, according to the Power Division.

Officials said electricity is likely to become cheaper by Rs 1.93 per unit under the quarterly adjustment, while a separate monthly adjustment for April 2026 may increase the tariff by Rs 1.73 per unit. After combining both adjustments, consumers are expected to receive an overall relief of about 20 paisa per unit.

The final decision will be taken after public hearings by the National Electric Power Regulatory Authority (NEPRA) on both the quarterly and monthly adjustments.

According to the Power Division, timely and effective measures have prevented a major increase in electricity prices for June. A spokesperson said consumers have been protected from a potential burden of Rs 5 to 6 per unit in monthly adjustments.

Despite the closure of LNG supplies and the use of more expensive furnace oil for power generation, officials maintained that no additional burden will be passed on to consumers. The Power Division estimated that these measures have saved consumers from an extra financial burden of approximately Rs 38 billion.

The spokesperson further stated that the monthly fuel adjustment has been contained at Rs 1.73 per unit and that consistent policies, increased electricity demand, and special packages have contributed to consumer relief. Additional local gas supply and reduced load management due to higher production from imported coal plants were also cited as factors easing pressure on the system.

In the first quarter alone, it was claimed that Rs 65 billion has been returned to electricity consumers, with the quarterly adjustment providing relief of Rs 1.93 per unit. Officials added that the impact of the monthly fuel adjustment has been largely neutralized, and consumers are still expected to benefit despite challenging energy conditions.

The Power Division also clarified that there will be no increase in the reference tariff next month and that, in fact, a small relief of around 20 paisa per unit is anticipated.