ISLAMABAD: In a major relief for consumers, Pakistan’s Power Division has announced an average reduction of 71 paisa per unit in electricity tariffs between July and February, translating into a cumulative relief of Rs46 billion.

Officials said the price drop was achieved despite global energy pressures through structural reforms, efficient planning and strict adherence to merit based power generation. Authorities prioritised low cost energy sources while reducing transmission and administrative losses to stabilise the system.

However, rising electricity demand during peak hours from 5pm to 1am has emerged as a serious challenge. Reduced hydropower output has forced the government to introduce a targeted strategy to manage demand and control costs without triggering steep tariff increases.

Under the new plan, limited load management of around two hours daily will be implemented during peak times. The move is aimed at reducing reliance on expensive furnace oil based generation and preventing a sharp spike in electricity prices.

Officials estimate that the strategy will help avoid an increase of up to Rs3 per unit, while without intervention tariffs could have surged by Rs5 to Rs6 per unit. Even with these measures, a modest increase of around Rs1.5 per unit may still occur.

Authorities stressed that this is not traditional loadshedding but a controlled peak hours relief strategy designed to protect consumers. Distribution companies have been directed to share clear outage schedules, ensuring transparency while maintaining affordability and system reliability.