NEPRA May Cut Electricity Prices by Rs1.93 Per Unit

Electricity consumers across Pakistan may receive tariff relief as the National Electric Power Regulatory Authority considers a proposed reduction of ₨1.93 per unit under the quarterly adjustment mechanism, according to discussions held during a recent public hearing.

The proposed adjustment was examined during a hearing on Tuesday regarding quarterly tariff petitions submitted by power distribution companies for the January–March 2026 period. NEPRA is expected to issue its final determination after completing stakeholder consultations and reviewing the relevant financial and operational data.

As per the details presented, the anticipated reduction is primarily driven by a significant decline in capacity charges, which fell by approximately ₨36.83 billion during the quarter. Additional reductions were recorded in use-of-system charges and market operation fees amounting to ₨11.24 billion, along with a further ₨23.51 billion adjustment linked to incremental energy units.

If approved, the tariff revision would apply to electricity consumers nationwide, including users of K-Electric, resulting in a direct decrease in monthly electricity bills.

Industry participants welcomed the potential reduction, stating that it could provide relief to households and businesses already under pressure from elevated operational expenses and persistent inflationary conditions.

During the hearing, stakeholders noted that while electricity prices have increased in several global markets, domestic policy measures have helped avoid corresponding increases locally, and urged the regulator to continue transferring operational efficiencies to end consumers.

Representatives further described the proposed ₨1.93 per unit reduction as a positive development and emphasised the need for deeper structural reforms within the power sector to ensure sustained consumer benefits.

The proceedings also highlighted underlying systemic challenges, including a mismatch between Pakistan’s installed generation capacity of approximately 45,000 megawatts and actual electricity generation levels of around 25,000 megawatts, indicating underutilisation of available infrastructure.

Participants raised concerns regarding long-term sector planning, demand management inefficiencies, idle generation capacity, and rising financial and operational constraints within the power sector.

It was also noted that several ageing power plants are being phased out while new generation facilities are being integrated into the system, adding transitional pressures on overall sector performance and financial management.

The proposed quarterly adjustment is being closely monitored as consumers anticipate relief during peak consumption periods. NEPRA is expected to announce its final decision after completing its review of stakeholder input and financial assessments.