The federal government is considering a significant change to Pakistan’s electricity tariff structure, according to official sources. The proposal would raise the threshold for the non-protected electricity tariff from 201 to 301 units per month.
Currently, households consuming even a single unit above 200 are moved into the non-protected category. This classification results in higher power rates for the next six months. Many low-income consumers say the policy is unfair, especially for those who slightly exceed the limit.
Sources said the change would provide relief to thousands of households that occasionally cross the 200-unit mark. Under the proposal, only consumers using 301 units or more would face the higher tariff.
The matter was recently discussed in a federal cabinet meeting. Several ministers argued the existing rule puts extra financial pressure on struggling families. “A person using 201 units pays almost Rs5,000 extra over six months. That is harsh for low-income users,” one minister noted.
Prime Minister Shehbaz Sharif has reportedly agreed to form a high-level committee to review the policy. The committee will study the issue and present recommendations to the cabinet. One option under review is to apply the non-protected rate only in the month the limit is crossed, rather than locking the consumer into higher charges for half a year.
The current 201-unit threshold was introduced by the National Electric Power Regulatory Authority (NEPRA) and the Ministry of Power. However, rising public criticism has pushed the government to revisit the rule.
Meanwhile, electricity bills may see further relief from separate quarterly and fuel price adjustments. Power distribution companies have requested NEPRA to approve a fourth quarterly adjustment. The hearing took place on August 4, 2025.
If approved, the adjustment would lower rates by Rs1.89 per unit due to revised agreements with power generation companies. This could also result in an additional Rs0.34 per unit reduction in August bills.
Curious to see how this tariff cut may affect your electricity bill? Read more in our full breakdown here: NEPRA approves Rs1.89 per unit cut in power tariff.
