Nepra Approves Rs0.35 Electricity Tariff Increase

The National Electric Power Regulatory Authority (Nepra) has sanctioned a temporary increase of Rs0.35 per unit in electricity tariffs for a three-month period, enabling distribution companies, including K-Electric, to recover Rs8.67 billion from consumers under the quarterly tariff adjustment mechanism for the second quarter of FY2025-26.

In its formal determination issued Tuesday, the regulator approved a uniform positive adjustment of Rs0.3504 per kilowatt-hour applicable across all consumer categories, with the exception of lifeline consumers, those billed under the incremental consumption package, and prepaid electricity users. Nepra clarified that the adjustment extends uniformly to K-Electric’s consumer base as well.

The authority explained that the quarterly revision reflects variations in capacity payments, variable operation and maintenance (O&M) expenses, use-of-system charges, and market operator fees. It further incorporated the impact of fuel cost adjustments on transmission and distribution losses, alongside the settlement of prior-period liabilities relating to incremental units for the October–December quarter.

Ex-Wapda distribution companies had initially sought approval to recover Rs10.83 billion for the relevant quarter, including a claim of Rs24.24 billion under capacity charges.

However, Nepra noted that the claimed amount was partially offset by Rs13.41 billion in negative adjustments attributed to lower O&M costs, system charges, market operator fees, transmission and distribution loss differentials, and the incremental consumption package.

Upon net reconciliation of all components, the regulator curtailed the recoverable amount to Rs8.67 billion, which will be collected through the approved Rs0.3504 per unit quarterly adjustment from March through May.