Power tariff down Rs 1.99/unit under QTA, up Rs 1.19/unit under April FCA

ISLAMABAD: Power consumers across the country are set to receive a major tariff relief of Rs67.17 billion through a Rs1.99 per unit reduction for three months, although part of the benefit will be offset by a Rs1.19 per unit increase under FCA for April.

As per details, the National Electric Power Regulatory Authority (NEPRA) has approved an overall negative quarterly tariff adjustment (QTA) of Rs67.173 billion for consumers of ex-WAPDA distribution companies (XWDISCOs), providing a relief of Rs1.9857 per unit in electricity bills for three months from June to August 2026.

According to the regulator's decision, the negative adjustment stems from variations in capacity charges, variable operation and maintenance costs, use of system charges, market operator fee, fuel cost adjustment impact on transmission and distribution losses, and recovery of prior-period profits on incremental units during the first quarter of calendar year 2026.

The relief will be passed on to consumers at a uniform rate of Rs1.9857 per kilowatt-hour and will apply to all consumer categories except lifeline consumers, units billed under the incremental consumption package, and prepaid consumers.

NEPRA noted that the Federal Government had issued policy guidelines on August 22, 2023, directing the regulator to ensure uniform application of quarterly tariff adjustments for both XWDISCO and K-Electric consumers.

"In order to maintain uniform tariff across country, NEPRA shall determine application of quarterly tariff determinations of XWDISCOs on KE consumers by way of tariff rationalization," the policy guidelines stated.

In line with these directives, the regulator approved the same negative quarterly adjustment of Rs1.9857 per unit for K-Electric consumers for the same period of June, July and August 2026, excluding lifeline consumers, incremental consumption package billed units and prepaid consumers.

However, in a separate determination, NEPRA also approved a positive Fuel Charges Adjustment (FCA) for April 2026, resulting in an increase of Rs1.1907 per unit in electricity tariffs.

The FCA decision followed a request submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G), which reported that actual fuel costs for April 2026 exceeded the reference fuel cost component incorporated in the tariff.

According to the regulator, the actual national average fuel charge component for April 2026 stood at Rs9.4405 per unit against the reference fuel charge component of Rs8.2498 per unit, resulting in a national average uniform increase of Rs1.1907 per unit.

The authority observed that while CPPA-G had initially sought a fuel cost increase of Rs1.7251 per unit, its own assessment and review resulted in a lower uniform FCA of Rs1.1907 per unit.

The FCA will be applicable to all consumer categories of XWDISCOs and K-Electric, except lifeline consumers, Electric Vehicle Charging Stations (EVCS), and prepaid electricity consumers who have opted for prepaid tariffs. The adjustment will also apply to electricity consumed under the incremental consumption package.

NEPRA directed XWDISCOs and K-Electric to incorporate the FCA in electricity bills issued during June 2026. The amount will be shown separately on consumers' bills based on the units consumed during April 2026.

The regulator further clarified that if bills for the applicable period have already been issued before notification of the decision, the adjustment may be recovered or passed on in subsequent billing months.

Despite the FCA increase, the much larger quarterly adjustment approved by the regulator means consumers will receive a substantial net relief in electricity bills over the next three months.

The authority has also directed XWDISCOs to submit future quarterly adjustment requests immediately after the close of each quarter to ensure timely processing and implementation. Additionally, distribution companies have been instructed to provide category-wise sales data, including industrial consumption details and analysis of sales and Maximum Demand Indicator (MDI) variations, in future quarterly adjustment filings.

The decision has been communicated to the Federal Government for notification in the official Gazette under Section 31(7) of the NEPRA Act.