The National Electric Power Regulatory Authority (Nepra) approved a 93-paisa per unit reduction in electricity rates, citing fuel cost adjustments, which will provide relief to consumers nationwide.
According to the official notification, the reduction pertains to fuel cost adjustments for November and will be reflected in consumers’ January electricity bills. The cut applies to all consumer categories across the country, including Karachi, except lifeline consumers, who will not benefit from the reduction.
The decision comes a week after the Central Power Purchasing Agency (CPPA) requested Nepra to pass on a Rs. 0.72 per unit refund to consumers in January bills, potentially providing relief of over Rs. 5.6 billion.
Fuel price adjustments are reviewed monthly to reflect fluctuations in global fuel prices and generation costs, with changes passed on through subsequent billing cycles.
In addition to the rate cut, Nepra unveiled the average base tariff for January–December 2026, setting it at Rs33.38 per unit. This marks a modest relief for consumers after years of consecutive tariff hikes.
The government has also shifted tariff determination from a fiscal-year to a calendar-year framework, with the rebased tariff effective January 1, 2026. Nepra noted that the new rate is 62 paisa lower than the July–December 2025 tariff, while the 2025-26 fiscal year’s average tariff stood at Rs. 34 per unit.
Currently, the country’s base tariff is Rs. 31.59 per unit, meaning the newly notified rate is Rs. 1.79 higher than the existing base tariff.
Nepra added that the total financial requirement of distribution companies (Discos) for 2026 is estimated at Rs. 3,379 billion, including Rs. 2,923 billion for electricity procurement and Rs. 456 billion for operational costs and profit margins. Annual electricity sales are projected at 101 billion units, and the new tariff is designed to ensure full cost recovery while meeting sector financial needs.