Pakistan Cuts Industrial Power Tariffs by Up to Rs. 4.58 Per Unit

Pakistan has reduced electricity tariffs for industrial consumers across all major categories by up to Rs. 4.58 per unit, providing long-awaited relief to factories and businesses grappling with some of the highest power costs in the region.

The federal government has formally notified the decision of the power regulator to lower per-unit rates effective February 2026.

The notification, issued by the Power Division, implements a ruling by the National Electric Power Regulatory Authority (NEPRA) dated February 11, 2026. The revised tariffs replace earlier rates notified in January and will apply to all distribution companies, including K-Electric, until the end of December 2026.

Industrial Tariff Reductions

Under the revised framework, small industrial consumers in the B1 category (up to 25 kilowatts on low-tension supply) will now pay an energy charge of Rs. 26.23 per unit, down from Rs. 30.80. Peak-hour rates have been reduced from Rs. 36.74 to Rs. 35.74 per unit, while off-peak rates have dropped from Rs. 30.05 to Rs. 25.48. However, B1 consumers will now face a fixed monthly charge of Rs. 1,250 per consumer for the first time.

For medium-sized industries in the B2 category (25 to 500 kW), the energy tariff has been cut from Rs. 30.73 to Rs. 26.16 per unit. Peak rates have declined from Rs. 36.68 to Rs. 35.68, while off-peak rates have fallen more sharply from Rs. 27.41 to Rs. 22.83 per unit. The fixed charge remains unchanged at Rs. 1,250 per kilowatt per month.

High-tension industrial consumers in the B3 category (11 to 33 kV) will now pay Rs. 27 per unit in energy charges, compared to Rs. 31 earlier. Peak-hour tariffs have eased from Rs. 36.68 to Rs. 35.68, and off-peak rates from Rs. 28.24 to Rs. 23.67. The fixed monthly charge continues at Rs. 1,250 per kilowatt.

The largest industrial users in the B4 category (66 to 132 kV and above) have also received relief, with energy charges reduced from Rs. 30.43 to Rs. 26.43 per unit. Peak rates have fallen from Rs. 36.68 to Rs. 35.68, while off-peak rates have been cut from Rs. 27.96 to Rs. 23.38. Fixed charges remain unchanged at Rs. 1,250 per kilowatt per month.

Overall, the revision lowers energy charges by roughly Rs. 4 to Rs. 5 per unit across most industrial categories, with the most significant benefit coming through reduced off-peak rates — a critical factor for export-oriented and continuous-process industries.

Domestic Consumers

For households under the new Schedule of Tariff (SOT), lifeline consumers using up to 50 units and 51–100 units will continue to pay Rs. 3.95 and Rs. 7.74 per unit, respectively, without any fixed charge.

However, protected domestic consumers (1–100 units and 101–200 units) will now pay fixed charges of Rs. 200 per kW and Rs. 300 per kW per month, respectively.

For non-protected consumers, fixed charges will range from Rs. 275 per kW per month to Rs. 675 per kW per month for higher consumption slabs.

Consumers using 301–400 units will see a reduction of Rs. 1.53 per unit to Rs. 36.46, while rates for 401–500 units will fall by Rs. 1.27 to Rs. 38.95. For 501–600 units, tariffs will decline by Rs. 1.40 to Rs. 40.22. Smaller reductions apply to higher slabs, with usage above 700 units reduced by Rs. 0.49 to Rs. 47.20.

Lower-usage unprotected consumers and lifeline protected users will see little to no change, with tariffs ranging from Rs. 3.95 to Rs. 33.10 per unit.