NEPRA reduces electricity tariff by Rs 1.98

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has reduced electricity tariffs by up to Rs 1.9857 per unit under the quarterly tariff adjustment mechanism, thereby providing relief of over Rs 67 billion to consumers across the country.

The regulator approved an overall negative adjustment of Rs 67.173 billion and decided that the relief would also be extended to K-Electric consumers during the same period of applicability. The discount will be passed on to eligible consumers over three months – June, July and August 2026.

“Based on the discussion made in the above paragraphs, the Authority has decided to approve an overall negative adjustment of Rs67,173 million,” the electricity regulator said in its decision, adding that it has also approved the application of quarterly adjustment for K-Electric consumers with the same period of applicability.

“Accordingly, relief from instant negative quarterly adjustment of Rs 1.9857/kWh will also be provided to K-Electric consumers, except lifeline, incremental consumption plan billed units and prepaid consumers, which will be enacted in a period of 03 months, i.e. June, July and August 2026,” the regulator said.

Nepra further said that the negative adjustment would be provided uniformly at the rate of Rs1.9857 per unit in June, July and August 2026. The relief will be applicable to all categories of consumers except lifeline consumers, units billed under additional consumption plan and prepaid consumers.

The electricity regulator conducted a public hearing on the matter on May 19, 2026.

During the hearing, commenter Amir Sheikh requested that the proposed negative quarterly adjustment be implemented during the billing months of May, June, and July to offset the impact of upcoming positive fuel charge adjustments (FCAs).

He also sought clarification regarding the positive adjustment in capacity charges claimed by Lahore Electric Supply Company (Lesco) and Hazara Electric Supply Company (Hazeco), despite higher sales figures.

In response, company officials explained that the higher capacity fee allocation was a result of increased demand, coupled with energy purchases proportionately below baseline levels, which contributed to the positive capacity fee adjustment for both distribution companies.

Officials further noted that, from a consumer perspective, the overall capacity fee adjustment remains negative and will ultimately benefit electricity users.

Another commentator, Rehan Javed, welcomed the operation of some efficient power plants on natural gas instead of regasified liquefied natural gas (RLNG), saying the move would likely bring relief in the next FCA. He urged authorities to continue this practice in the future.

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