The NEPRA Flat Rate Rs22.98 approval marks a major development in Pakistan’s energy policy, offering relief and stability to industrial and agricultural electricity consumers struggling under rising costs. The National Electric Power Regulatory Authority (NEPRA) has finalized a three-year incremental consumption package designed to revive power demand and strengthen the country’s energy utilization efficiency.
NEPRA’s Decision to Support Key Economic Sectors
According to the official statement, NEPRA has endorsed a proposal from the Power Division policy to introduce a fixed tariff structure that benefits both industrial and private agricultural consumers. The government aims to support factories, farms, and agro-based industries that are essential for national productivity but have faced declining electricity usage due to high tariffs.
The NEPRA flat rate Rs22.98 package will remain effective for three years, ensuring long-term planning stability and predictable energy costs. The initiative is expected to stimulate economic activity by offering an affordable rate for electricity consumption beyond baseline levels.
The announcement comes at a critical time when the industrial sector’s power demand has dropped by around 14%, and agricultural electricity consumption has plummeted by nearly 47% over the last three years. The decline is primarily attributed to reduced economic output and the growing adoption of renewable power sources through net metering, which now contributes over 6,000 megawatts nationwide.
Public Hearing and Policy Overview
NEPRA will officially hold its public hearing on November 11, 2025, to discuss the detailed framework and gather stakeholder feedback. The hearing will be conducted online, allowing farmers, industrial representatives, and distribution companies to participate.
This NEPRA public hearing 2025 is part of the regulatory authority’s transparent approach to policy development. Stakeholders will have the chance to raise concerns and suggest improvements before final implementation.
Officials confirmed that the package is designed to be subsidy neutral, meaning it won’t add additional burden on the federal budget. Instead, it’s structured around system optimization and revenue stability.
Details of the Rs22.98 Flat Electricity Price
The flat electricity price of Rs22.98 per unit will apply equally to Time-of-Use (ToU) and Non-ToU consumers across all XW-DISCOs and K-Electric networks. It will cover incremental consumption — electricity used above a reference period that spans from December 2023 to November 2024.
Consumers using more power than their average reference level will benefit from the discounted rate. This approach encourages industries to increase operational hours and helps agricultural users run irrigation systems and tube wells without excessive billing pressure.
The initiative will help Pakistan utilize idle generation capacity and improve overall system utilization efficiency. The Power Division noted that a well-structured incremental plan can strengthen the entire energy value chain by aligning demand with available capacity.
Incremental Consumption Package and Benefits
This incremental consumption package introduces a forward-looking policy for reviving economic productivity. Instead of temporary subsidies, the scheme incentivizes real energy consumption that contributes to output growth.
Under this package:
- Positive Fuel Cost Adjustments (FCAs) will apply to eligible users.
- Quarterly Tariff Adjustments (QTAs), Debt Service Surcharge (DSS), and negative FCAs will not apply on incremental units.
- The scheme will remain valid for three years, with reviews every six months to ensure fiscal sustainability.
If total incremental consumption exceeds 25% above the established baseline, NEPRA will conduct a review to analyze marginal cost differences and adjust accordingly.
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Eligibility and Special Provisions
All Captive Power Plants (CPPs) will be considered new consumers for reference calculation. This means industries operating their own power setups can also opt for grid power without penalty.
In addition, net-metering consumers will only qualify if they import more energy from the grid than they export during the billing period. Their incremental benefit will be capped on net imported units in both peak and off-peak hours.
This approach ensures fairness while maintaining a balance between distributed generation users and standard grid consumers.
Power Division Policy and Sectoral Revival
The Power Division policy emphasizes that the scheme’s primary purpose is to revive electricity consumption in manufacturing and agriculture — two sectors essential to Pakistan’s GDP growth.
For industries, the industrial electricity rates will remain consistent, offering predictability for production and budgeting. Manufacturing units can plan future operations with confidence, knowing their energy cost will not fluctuate unexpectedly.
For farmers, the agricultural power tariff reduction will reduce input costs, enabling better irrigation, lower diesel dependency, and higher crop yields. This move aligns with the broader agenda of supporting rural productivity and food security.
Energy experts note that such measures will restore investor confidence in Pakistan’s industrial sector, attract new capital, and prevent further deindustrialization caused by erratic power pricing.
Financial Sustainability and Regulatory Safeguards
NEPRA’s decision to introduce the NEPRA Flat Rate Rs22.98 policy is based on extensive analysis of cost, capacity, and expected revenue streams. Semi-annual reviews will be conducted to assess the program’s financial impact.
If the review indicates a requirement for consecutive tariff hikes, the scheme will automatically terminate — a safeguard designed to prevent long-term fiscal strain.
The regulator also clarified that the package will not disrupt other ongoing energy projects or circular debt management efforts. Instead, it complements existing reforms by ensuring better utilization of available generation assets.
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Expected Impact on Economy and Energy Stability
The NEPRA flat rate Rs22.98 package aims to support industrial electricity rates and help Pakistan’s energy system recover from years of under-utilization. By encouraging productive consumption rather than subsidized idle capacity, the scheme promotes efficiency and competitiveness.
Economists believe that consistent energy pricing will make exports more competitive, particularly in textile and manufacturing sectors where electricity costs play a major role. The agriculture sector, on the other hand, will benefit from more reliable and affordable power for irrigation and mechanized farming.
Moreover, as industries consume more electricity, the government’s capacity payments to power producers will decline, improving the sector’s financial health and reducing reliance on budgetary support.
A Step Toward Sustainable Growth
The NEPRA Flat Rate Rs22.98 plan is being hailed as one of the most balanced tariff measures in recent years — one that supports consumers without straining public finances. It combines affordability, accountability, and efficiency under a single framework aimed at sustainable growth.
As Pakistan continues its journey toward energy reform, this initiative represents a practical solution to bridge the gap between generation and consumption. The move is expected to create industrial momentum, support the agriculture value chain, and restore confidence in the country’s power infrastructure.