Nepra hikes power tariff by Rs1.63 per unit for January

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday approved a uniform increase of Rs1.6274 per unit in electricity tariffs under the monthly fuel cost adjustment, citing a variation in fuel charges for January 2026.

The regulator noted that the decision would be applicable to all the consumer categories of KE and ex-Wapda Discos, except lifeline consumers, electric vehicle charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff.

According to a notification issued by the Nepra, ex-Wapda Discos and K-Electric will reflect the fuel charges adjustment in respect of January 2026in the billing month of Marach 2026.

The move is expected to generate around Rs17 billion from the electricity consumers, said sources.  

In its notification, the Nepra said: “In exercise of power conferred by the fourth proviso of sub-section 7 of Section 31 of the Nepra Act, the Authority has made the following adjustment on account of variation in fuel charges for the month of January 2026 in the approved tariff of Ex-WAPDA Distribution Companies (XWDISCOS): Actual National Avg. Uniform FCC for January 2026: Rs.12.0227/kWh Corresponding Reference Fuel Charge Component: Rs.10.3954/kWh National Avg. Uniform FCA for January 2026-Increase: Rs.1.6274/kWh”.

It shall be shown separately in the consumers' bills on the basis of units billed to the consumers in the month of January 2026.

The move came a day after the power regulator approved a Rs0.35 per unit hike in electricity tariffs for three months, allowing power distribution companies and K-Electric to recover Rs8.67 billion from consumers between March and May under quarterly adjustments for the second quarter of FY25-26.

In a determination issued Tuesday, The News reported, Nepra authorised a uniform positive adjustment of Rs0.3504 per kilowatt-hour for all consumer categories, except lifeline users, consumers billed under the incremental consumption package and prepaid customers. The increase will also apply to KE consumers.

The regulator said the adjustment stems from variations in capacity charges, variable operations and maintenance (O&M), use of system charges, market operator fee, impact of fuel cost adjustments on transmission and distribution losses and recovery of prior-period payables on incremental units during October-December.

Ex-Wapda distribution companies (XWdiscos) had sought approval to recover Rs10.83 billion for the quarter.