Government Announces No Electricity Tariff Increase for June, Cites Policy Measures

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The federal government has announced that electricity tariffs will remain unchanged in June, stating that effective policy decisions have helped protect consumers from additional financial pressure despite ongoing challenges in the energy sector.

Relief for Electricity Consumers

According to a spokesperson of the Power Division, consumers have been spared a potential monthly fuel adjustment burden of around Rs5 to Rs6 per unit, which could have significantly increased electricity bills.

The official added that despite interruptions in LNG supplies and the use of expensive furnace oil, the additional cost has not been passed on to end users. As a result, an estimated Rs38 billion financial burden has reportedly been avoided through timely interventions.

Fuel Adjustment and Cost Management

The Power Division stated that the monthly fuel adjustment has been contained at Rs1.73 per unit, preventing a sharper increase in electricity prices. It further noted that continuity in energy policy, rising electricity demand, and targeted relief measures have helped stabilize costs for consumers.

Officials also credited increased availability of local gas and higher output from coal-based power plants using imported fuel as key factors that reduced pressure on the system and improved supply management.

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Refunds and Quarterly Adjustments

In the first quarter of the fiscal period, electricity consumers reportedly received Rs65 billion in refunds. Additionally, a quarterly adjustment provided relief of Rs1.93 per unit, which the department said helped offset fuel cost impacts.

The Power Division also indicated that the reference tariff will not increase next month, and consumers may even receive a minor relief of approximately Re0.20 per unit.

Energy Mix and Future Plans

Federal Energy Minister Awais Leghari recently stated that Pakistan is gradually reducing dependence on imported fuels. He said around 74% of electricity is now generated from local sources, while the remaining 26% comes from imported coal and gas.

He added that the share of local energy is expected to rise further in the coming years, potentially reaching 96%, as new projects and feasibility studies support conversion of imported coal plants to domestic Thar coal.

The minister also emphasized that while wind and solar energy are expanding, they cannot yet fully replace base-load generation, which continues to rely on fossil fuels and hydropower for stability.

According to official figures, 11,500 out of 14,000 electricity feeders currently operate without load-shedding, while remaining outages are attributed to system losses and technical constraints.

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