The government is challenging Rs1.79 per unit electricity tariff increase

Urges NEPRA to implement uniform tariffs applicable to both state-run DISCOs, 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 basic tariff by Rs1.79 per entity with effect from 1 January 2026.

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

Recently, NEPRA fixed the national average base tariff at Rs33.38 per unit, up from the current rate of Rs31.59 per unit, reflecting an increase of Rs1.79 per unit. However, the revised tariff remains subject to formal approval by the federal government, to which NEPRA had forwarded its decision following requests from the power 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 scheduled to hear the government’s review request on January 12, after which any potential changes in electricity prices will be determined. Officials said the final decision on electricity tariffs will 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 earlier notified tariff of Rs 34 per unit for the financial year 2025-2026.

According to NEPRA’s provision, the total financial requirement of DISCOs for 2026 has been estimated at Rs 3,379 billion, of which Rs 2,923 billion has been allocated for power purchase, while Rs 456.15 billion will cover operating costs and profits of the distribution companies.

NEPRA further expected annual electricity sales for 2026 to reach 101 billion units.

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