Govt Praises Itself for Shielding Public From Costly Electricity During US-Iran War

The Ministry of Energy (Power Division) on Monday declared that its timely policy decisions, load management, and coordinated planning have prevented a sharp increase in electricity prices and saved consumers from a Rs. 5-6 per unit hike in June 2026.

Net Relief? How?

According to the statement, a quarterly adjustment for the first quarter of 2026 (January–March) is expected to provide a relief of Rs. 1.93 per unit over the next three months, amounting to around Rs. 65 billion. However, this is partially offset by a monthly fuel adjustment in April 2026, which reflects a Rs. 1.73 per unit increase.

The ministry said the impact of both adjustments largely cancels out, meaning consumers will see no major change in electricity rates compared to the January–May period, with only minimal variation expected.

The Power Division added that without its intervention, the monthly fuel adjustment alone could have increased electricity prices by Rs. 5-6 per unit (a Rs. 38 billion burden on consumers in April).

The ministry explained that despite severe RLNG shortages caused by regional geopolitical tensions, rising international fuel prices, and increased reliance on expensive furnace oil, electricity tariffs will remain stable in June. They even expect a slight net relief of up to 20 paisa per unit.

For the first quarter, the negative impact of adjustments was absorbed through system improvements, reduced transmission losses, better demand management, and incremental tariff reforms that encouraged higher consumption efficiency.

The government noted that NEPRA’s reference tariff was originally based on assumptions of stable fuel prices and exchange rates. However, the situation changed significantly due to regional conflict and disruptions in energy markets, which pushed global fuel prices sharply higher and altered the generation mix.

Officials highlighted that RLNG prices, initially projected at $70 per barrel Brent equivalent, surged to nearly $120 per barrel in April 2026. Under normal conditions, this would have led to a sharp increase in monthly fuel charges.

However, the ministry said the government managed to limit the impact by increasing local gas allocation, maximizing output from furnace oil and imported coal-based plants, and applying controlled load management strategies.

As a result, the expected fuel adjustment was reduced to Rs. 1.73 per unit instead of a much higher projected increase.

The Power Division concluded that despite severe external pressures, policy consistency and operational measures helped prevent a major tariff shock for consumers while stabilizing the overall power system.