Pakistan’s federal government is set to eliminate the Rs35 monthly Pakistan Television (PTV) fee charged on electricity bills, a move expected to benefit over 40 million consumers. Prime Minister Shehbaz Sharif will soon announce this decision, alongside a recent reduction in the Power Purchase Price (PPP) by the National Electric Power Regulatory Authority (NEPRA).
The Rs35 PTV fee, automatically deducted from electricity bills, has long frustrated residential, commercial, and industrial users. Generating Rs1.5 billion monthly—nearly Rs16 billion annually—for the state broadcaster, the levy has been a focal point of public discontent. A senior official confirmed that scrapping the fee aims to ease financial burdens, offering tangible relief to millions. The formal announcement from Prime Minister Sharif is imminent, marking a significant step toward reducing utility costs.
On June 29, 2025, NEPRA reduced the national average Power Purchase Price (PPP) for fiscal year 2025-26 to Rs 25.98 per unit, a 3.77% decrease from Rs 27 per unit. This translates to a savings of Rs 1.02 per unit, lowering the total PPP to Rs 3.342 trillion. For ex-Wapda Distribution Companies (XWDiscos), the PPP is Rs 3.066 trillion, or Rs 26.34 per unit, excluding K-Electric. The decision sets the stage for consumer tariff adjustments in the coming months, which could further reduce electricity costs.
The PPP for XWDiscos includes Rs 1.125 trillion for fuel and variable operational and management costs, while Rs 1.941 trillion, which accounts for 63% of the total, covers capacity charges. These charges, including costs for the National Transmission and Despatch Company and the Pak Matiari-Lahore Transmission Company, amount to Rs 6.484 per unit per month, based on an average demand of 24,943 MW. Energy charges are Rs 9.67 per unit, and capacity charges are Rs 16.67 per unit, totalling Rs 26.34 per unit before losses.
Capacity charges continue to dominate Pakistan’s power costs, a trend that has been evident in previous years. In fiscal year 2023-24, capacity charges were Rs 16.22 per unit, while energy charges were Rs 6.73 per unit, with a total PPP of Rs 22.95 per unit. For 2025-26, the Central Power Purchasing Agency proposed seven PPP scenarios, factoring in 3–5% demand growth, exchange rates of Rs280–300 per USD, and hydrological flows. Fuel charges range from Rs 8.16 to Rs 9.19 per unit, with capacity payments between Rs 16.04 and Rs 16.45 per unit, underscoring the persistent challenge of fixed costs.
Removing the PTV fee and reducing the PPP signal the government’s commitment to easing electricity costs for Pakistan’s 40 million power consumers. These measures address public concerns about rising utility bills, particularly amid economic pressures. By alleviating financial burdens, the government aims to improve living standards and boost public confidence in its economic policies.
