Govt proposes power tariff adjustments and higher fixed charges

The federal government on Saturday proposed a monthly fixed charge of between Rs200 and Rs675 for more than 28.5 million residential electricity consumers. The aim is to raise around Rs125 billion and fund a relief package of Rs4.04 per unit for industrial users.

The revised Schedule of Tariff (SoT) was submitted to the National Electric Power Regulatory Authority (Nepra). Nepra has been put on notice for a public hearing on the first available date after the weekend, for immediate implementation within the current month.

The government said the move is meant to rationalise tariffs for the calendar year 2026. It seeks to balance affordability for low-usage consumers while recovering costs from higher users.

Under the proposal:

• Protected consumers using 51-200 units would face fixed charges of Rs200–300 per month.

• Unprotected consumers consuming up to 600 units could see fixed charges rise from Rs200 to Rs675, depending on usage, with up to 100% increases.

• Households consuming 601–700 units and above 700 units would see fixed charges reduced from Rs800–1000 to Rs675 per month.

“The present volumetric tariff framework has placed a disproportionate recovery burden on other consumers, leading to increased cross-subsidisation and migration to alternative energy solutions,” said Nepra.

Lower-usage unprotected consumers (1-300 units) and lifeline protected consumers would see tariffs mostly unchanged, ranging from Rs3.95 to Rs33.10 per unit depending on usage.

Nepra will hold a public hearing on February 10, 2026, allowing stakeholders and consumers to share their views on the proposed tariff changes.