Govt seeks 25pc hike in electricity tariff

The government has formally sought about a 25 per cent increase in the base national electricity tariff to become effective from July 1, 2025, to secure a revenue requirement of about Rs4 trillion in FY25 for power companies. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on May 23 to examine a petition filed by the Central Power Purchasing Agency (CPPA) of the Power Division on behalf of power companies seeking an increase of Rs4.40 to Rs6.51 per unit in the overall power purchase price (PPP) for FY25. The CPPA, acting as a commercial agent of the power sector, has presented seven different scenarios for electricity to be sold during FY25. Under these estimates, 131,000 to 139,000 gigawatt hours (GwH) of electricity sales are expected next year, with demand growth ranging from 3pc to 5pc.