ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has announced a reduction of Rs1.15 per unit in electricity tariffs for all consumers except lifeline users, with the change also extending to K-Electric customers.
This decision follows a hearing on the Power Division’s proposal to implement a uniform basic tariff nationwide. The move aims not at increasing federal revenues but at meeting constitutional and policy requirements for tariff rationalisation.
Nepra has kept the tariff unchanged for lifeline consumers, charging Rs3.95 per unit for those using up to 50 units, and Rs7.74 per unit for 100 units. Protected consumers consuming 100 units will now pay Rs10.54 per unit, while those using 200 units will be charged Rs13 per unit.
For non-protected consumers, the tariff reduction of Rs1.15 per unit applies across all categories, including commercial users, bringing their new average rate to Rs45.43 per unit. General services consumers will now pay Rs43.17 per unit, industries Rs33.48, bulk consumers Rs41.76, and agricultural consumers Rs30.75 per unit after the cut.
The government attributed this tariff relief to rupee stability, falling capacity payments, and declining global fuel prices amid ongoing economic challenges. A renegotiated agreement with independent power producers (IPPs) is expected to reduce capacity payments by Rs236 billion in the fiscal year 2026.
Power Division officials estimate national electricity consumption for FY2025-26 at around 103 billion units, slightly down from the 106 billion units projected for the current fiscal year. The revenue requirement for FY26 has been revised downward to Rs3.521 trillion from Rs3.768 trillion previously.
The Power Division highlighted a Rs1.27 per unit decline in power generation costs and a Rs1.34 per unit decrease in capacity charges, enabling the tariff reduction. However, capacity payments, fixed charges paid to power producers, will remain a significant cost for consumers, projected at Rs1.766 trillion for FY26, or Rs17.06 per unit. This represents an annual cut of Rs1.34 per unit from the Rs1.952 trillion capacity payments in FY2024-25.
