The government has decided not to increase the average basic electricity tariff, offering major relief to consumers amid rising energy costs.

During a hearing at the National Electric Power Regulatory Authority (NEPRA), the additional secretary of the Power Division stated that subsidy adjustments have been made, eliminating the need for a tariff hike.

According to the Power Division officials, a significant change in the energy mix has been witnessed since July, which has affected the overall cost of electricity.

“The government has decided that no additional burden will be passed on to consumers, and electricity rates will remain at their current levels,” the officials said.

The Power Division officials also revealed that a total of Rs629 billion in subsidies is being provided to various categories of consumers.

The financial requirements of the power sector were Rs3,768 billion in 2024, while the estimated requirement for 2026 is Rs3,379 billion.

The officials highlighted that the industrial cross-subsidy has been reduced from Rs225 billion to Rs102 billion, and the inefficiencies of power companies will not be passed on to consumers.

Authorities in Islamabad also announced that a new billing system will be launched soon, which would enhance transparency.

The Power Division has requested NEPRA to make a timely decision to ensure the government’s policy can be implemented effectively.