Official sources say major amendments to the NEPRA Act are under consideration to allow greater flexibility in imposing surcharges
ISLAMABAD: (UrduPoint/Pakistan Point News-June 11th, 2025) The Federal government has proposed imposing an additional surcharge on electricity consumers in the budget for the fiscal year 2025–26, a move that could lead to further hikes in power tariffs and deepen the financial strain on households.
The budget was presented in the National Assembly on Tuesday, with key provisions indicating the government’s intention to increase the financial burden on electricity users.
According to official sources, significant amendments to the NEPRA Act are under consideration to allow greater flexibility in imposing surcharges.
Currently, the surcharge on electricity bills is capped at 10 percent. However, the proposed amendment would empower the government to revise surcharges on a case-by-case basis and for specified durations, removing the existing limit.
As per the proposal under review, the government may levy up to Rs 3.23 per unit as an additional surcharge. While a final decision has yet to be made, officials confirm that discussions are ongoing and the move is being considered in light of the country’s fiscal challenges.
If the amendment is approved, the government will be able to impose surcharges in response to budgetary needs or financial crises, potentially placing an additional burden on the public.
In the past, surcharge collections have been used to service the interest on circular debt. To further tackle the growing circular debt, the government now plans to borrow Rs 1,275 billion from commercial banks. This loan will reportedly be repaid over the next six years through surcharges collected from consumers.
Energy sector experts have warned that amending the NEPRA Act could set the stage for frequent increases in electricity tariffs. They say the move may fuel inflation and intensify the hardships faced by domestic consumers.
