Nepra reduces power tariffs for consumers nationwide under FCA

• Reduction applies to January bills due to November FCA.
• Lifeline consumers excluded from tariff relief: notification.
• Discos' 2026 financial needs estimated at Rs3,379bn.

The National Electric Power Regulatory Authority (Nepra) has announced a Rs0.62/unit cut in electricity tariffs after issuing a notification applicable to consumers across the country.

According to the notification, the reduction has been decided on account of fuel cost adjustment for November and will be passed on to consumers through their January electricity bills.

It stated that the relief is applicable to all categories of consumers nationwide, including Karachi. However, the authority clarified that lifeline consumers will not benefit from the reduction.

This reduction came a week after the Central Power Purchasing Agency’s (CPPA) requested the Nepra to refund Rs0.72/unit to consumers in January bills, potentially giving consumers relief of over Rs5.6 billion.

Fuel price adjustments are reviewed monthly by Nepra to reflect changes in global fuel prices and generation costs, with the impact passed on to consumers through subsequent billing cycles.

Average base tariff for 2026 issued

Meanwhile, the authority has also unveiled the new average base tariff for January-December 2026, setting it at Rs33.38 per unit, offering modest relief to consumers after years of relentless increases.

Notably, the government has shifted tariff determination from a fiscal-year basis to a calendar-year framework and the rebased consumer-end tariff will come into effect from January 1, 2026.

The Nepra noted that the new tariff is 62 paisa lower compared with the July-December 2025 rate, while the average tariff for the 2025-26 fiscal year stood at Rs34 per unit.

It should be noted that currently, the country’s base tariff stands at Rs31.59 per unit, meaning the newly notified rate is Rs1.79 per unit higher than the existing base tariff.

The total financial requirement of distribution companies (Discos) for 2026 is estimated at Rs3,379 billion, including Rs2,923 billion for electricity procurement and Rs456.15 billion for operational costs and profit margins.

The authority added that annual electricity sales for the year are projected at 101 billion units, and the new tariff will ensure cost recovery while meeting the sector's financial needs.