Government contests hike in unit electricity tariff by Rs 1.79

Urges NEPRA to implement a uniform tariff framework applicable to both state-run DISCOs and K-Electric

The federal government has filed a review petition with the National Electric Power Regulatory Authority (NEPRA), challenging its decision to increase the average base tariff of electricity by Rs 1.79 per unit with effect from January 1, 2026.

In its petition, the government also urged NEPRA to implement a single tariff structure for state-owned distribution companies (DISCO) and K-Electric, seeking uniformity in electricity prices across the country.

Recently, NEPRA fixed the national average base tariff at Rs 33.38 per unit, up from the current rate of Rs 31.59 per unit, reflecting an increase of Rs 1.79 per unit. The revised tariff, however, remains subject to the formal approval of the federal government, to which NEPRA had transmitted its decision following requests from electricity distribution companies.

According to official sources, the Power division has formally approached NEPRA to implement a uniform tariff framework applicable to both state-run DISCOs and K-Electric.

NEPRA is expected to hear the government’s review petition on January 12, after which any potential changes in electricity rates will be determined. Officials said the final decision on electricity tariffs would be announced through an official government notification.

Earlier, NEPRA noted that the newly approved tariff of Rs 33.38 per unit is 62 paisa lower than the previously notified tariff of Rs 34 per unit for the financial year 2025-26.

As per NEPRA’s determination, the total financial requirement of DISCOs for 2026 has been estimated at Rs3.379 billion, of which Rs2.923 billion is allocated for power purchases, while Rs456.15 billion will cover operational costs and profits of distribution companies.

NEPRA further projects that annual electricity sales for 2026 will reach 101 billion units.

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