NEPRA Announces 48-Paisa Reduction in Electricity Tariffs Nationwide, Raises Concerns Over AMI Meter Rollout

The National Electric Power Regulatory Authority (NEPRA) has announced a reduction in electricity tariffs, bringing welcome relief to consumers across Pakistan. Under the fuel price adjustment for September, power rates have been reduced by 48 paisa per unit, a larger decrease than the 37 paisa per unit initially proposed by the Central Power Purchasing Agency (CPPA). The reduction will be reflected in electricity bills issued in November and will apply nationwide, including in Karachi. Lifeline consumers, who already benefit from subsidized rates on lower consumption slabs, will not see any change in their charges.

During the same regulatory hearing, NEPRA raised concerns about the widespread installation of Advanced Metering Infrastructure (AMI) meters by distribution companies without obtaining prior approval. Over four million AMI meters have reportedly been installed, with distribution companies claiming that they acted under directives from the Power Division. NEPRA emphasized that regulatory consent was mandatory before such a large-scale rollout, highlighting the importance of oversight in protecting consumer interests.

The regulator also highlighted the significant cost difference between conventional meters and AMI meters. Standard meters are priced at around Rs 5,000 each, while AMI meters cost nearly Rs 20,000, raising questions about transparency and potential financial burdens on consumers. These issues emerged during the hearing on Karachi Electric’s Multiyear Tariff (MYT) application for the financial years 2025–26 to 2029–30, underscoring the need for careful regulation and accountability in utility management.

The tariff reduction, combined with the scrutiny over AMI meter deployment, reflects NEPRA’s dual approach of providing immediate relief to electricity consumers while ensuring long-term oversight and transparency in Pakistan’s power sector.