Power consumers may face Rs10.83 billion burden under Q2 FY26 quarterly tariff adjustment

Electricity consumers in Pakistan are set to face an additional 42 paise per unit charge for the period from April to June 2026, primarily due to capacity charges paid to power producers in the second quarter of FY26. 

The National Electric Power Regulatory Authority (Nepra) has called for a public hearing on February 17 following a request from the ex-Wapda distribution companies (Discos) to recover Rs10.83 billion from consumers under the quarterly tariff adjustment (QTA) mechanism.

The proposed increase comes after a positive QTA of 42 paise per unit for the upcoming quarter, which will replace the existing 33 paise per unit adjustment for the first quarter (July-September 2025), expiring at the end of February.

The Discos’ request includes adjustments for capacity charges, transmission charges, market operator fees, and the impact of the government’s incremental consumption package for industrial and agricultural consumers. The adjustment also reflects transmission and distribution losses and variable operations and maintenance charges during FY2025’s second quarter.

The total capacity charges for the period amount to approximately Rs24.25 billion. However, this is partially offset by negative adjustments in other areas, including Rs1.655 billion for variable O&M charges, Rs3 billion for service charges, Rs7.5 billion for the incremental package, and Rs1.2 billion for system losses.

The adjustment will apply to all Discos except for Hyderabad, Peshawar, and Quetta Electric Supply companies, which have requested negative adjustments of Rs3.5 billion, Rs5.1 billion, and Rs4.1 billion, respectively. Other Discos, including Multan, Gujranwala, Islamabad, and Lahore, have requested additional recoveries ranging from Rs1.9 billion to Rs5.6 billion.

Once approved, the QTA will also apply to K-Electric, though adjustments, along with Debt Service Surcharge (DSS) and negative Fuel Cost Adjustments (FCAs), will not apply to consumers under the government’s special tariff package for incremental consumption.