Nepra Cuts Electricity Tariffs by Rs0.62 per Unit for Consumers Nationwide

ISLAMABAD, January 8, 2026: The National Electric Power Regulatory Authority (Nepra) has announced a reduction in electricity tariffs for consumers across Pakistan. The authority has lowered the tariff by Rs0.62 per unit. The reduction comes as a fuel cost adjustment (FCA) for November and will appear in January electricity bills.

The notification states that this relief applies to all categories of consumers nationwide, including Karachi. However, lifeline consumers will not benefit from the cut. This reduction comes just a week after the Central Power Purchasing Agency (CPPA) requested Nepra to refund Rs0.72 per unit in January bills, which could provide more than Rs5.6 billion in relief to consumers.

Nepra reviews fuel price adjustments monthly. These adjustments reflect changes in global fuel prices and power generation costs. The impact is passed to consumers in subsequent billing cycles.

Along with the tariff reduction, Nepra also unveiled the new average base tariff for 2026, set at Rs33.38 per unit. This offers modest relief after years of consistent tariff increases. Previously, the government calculated tariffs on a fiscal-year basis. Now, the tariffs will follow a calendar-year framework starting January 1, 2026.

The new rate is 62 paisa lower than the July-December 2025 rate. The average tariff for the 2025-26 fiscal year was Rs34 per unit. Currently, the country’s base tariff stands at Rs31.59 per unit, so the new rate is Rs1.79 per unit higher than the existing base tariff.

Nepra also shared financial projections for 2026. Distribution companies (Discos) will need Rs3,379 billion, including Rs2,923 billion for electricity procurement and Rs456.15 billion for operational costs and profits. Annual electricity sales are projected at 101 billion units. The new tariff ensures cost recovery while addressing the financial needs of the power sector.

Consumers can expect the reduced rates on their January 2026 electricity bills, providing partial relief amid rising costs.