NEPRA cuts 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, providing relief worth over Rs67 billion to consumers across the country.

The regulator approved a total negative adjustment of Rs67.173 billion and decided that the relief would also be extended to K-Electric consumers for the same application period. The reduction will be passed on to eligible consumers over three months – June, July and August 2026.

“Based on the discussion in the above paragraph, the authority has decided to approve a total negative adjustment of Rs67,173 million,” the power regulator said in its decision, adding that it had also approved the application of the quarterly adjustment for K-Electric consumers with the same application period.

“Therefore, the relief of immediate negative quarterly adjustment of Rs 1.9857/kWh shall also be given to the consumers of K-Electric except livline, incremental consumption package billed units and prepaid consumers to be passed for a period of 03 months i.e. June, July and August 2026,” the regulator said.

Nepra further stated that the negative adjustment would be provided uniformly at the rate of Rs 1.9857. per unit during June, July and August 2026. The relaxation will apply to all consumer categories except lifeline consumers, units billed under the tiered consumption package and prepaid consumers.

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

During the hearing, commentator Amir Sheikh requested that the proposed negative quarterly adjustment be implemented in the billing months of May, June and July to offset the impact of upcoming positive fuel duty adjustments (FCA).

He also sought clarification regarding the positive adjustment of 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 allocation of capacity charges was due to increased demand, combined with proportionally lower energy purchases than reference levels, which contributed to the positive adjustment of capacity charges for the two distribution companies.

Officials further noted that from the perspective of consumers, the adjustment of aggregate capacity charges remained negative and would ultimately benefit electricity users.

Another commentator, Rehan Javed, praised the operation of certain efficient power plants on natural gas instead of re-gasified liquefied natural gas (RLNG), saying the move was likely to provide relief in the upcoming FCA. He urged the authorities to continue this practice in the future.

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