NEPRA to hear govt plan for new uniform power tariff, fixed charges for DISCOs, K-Electric on Feb 10

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has scheduled a crucial public hearing on February 10, 2026 on the federal government’s motion seeking rationalization of uniform electricity tariff, including revision of rates and introduction of fixed charges for XWDISCOs and K-Electric.

According to the official notice issued by NEPRA, the hearing is being conducted under Sections 7 and 31 of the NEPRA Act, read with Rule 17 of the NEPRA Tariff (Standards and Procedures) Rules, 1998. The hearing will take place at 03:00 PM and will be held both online and at NEPRA Tower.

NEPRA stated that the Federal Government has filed a motion along with policy guidelines for rationalization of tariff for XWDISCOs and K-Electric, and submitted that the purpose of the move is to better reflect the underlying cost structure and fixed cost recovery of the power sector’s consolidated revenue requirement.

The notice further revealed that the Cabinet has already approved the uniform tariff through Case No. 89/Rule-19/2026/111 on February 4, 2026, and the same has now been forwarded to NEPRA for consideration in line with legal provisions.

NEPRA noted that the federal government has requested the Authority to incorporate policy guidelines for revision of rates and application of fixed charges into the NEPRA-determined schedule of tariff, and issue a revised schedule after adjusting variable rates in line with the already determined revenue requirement of DISCOs.

The regulator emphasized that the motion has been submitted without changing the already targeted tariff differential subsidy of Rs249 billion, which is a key component used to bridge the gap between actual cost of electricity supply and the consumer-end uniform tariff structure.

According to the notice, the federal government, through its motion, has sought three major actions from NEPRA. First, it has proposed revision of the applicable uniform tariff and issuance of a revised Schedule of Tariff (SOT) while remaining within the determined revenue requirement of XWDISCOs and within the already budgeted tariff differential subsidy of Rs249 billion.

Second, the government has proposed incorporation of fixed charges into the NEPRA-determined schedule of tariff, followed by issuance of a revised schedule after adjusting variable rates in accordance with the already determined revenue requirement of DISCOs. This indicates that the government is seeking a restructuring of the tariff mix by shifting a larger portion of the burden to fixed charges rather than variable per-unit rates.

Third, the federal government has requested NEPRA to reconsider and issue for K-Electric a modified uniform tariff as mentioned in the motion, aimed at maintaining uniform tariff across the country while ensuring recovery of K-Electric’s revenue requirements as determined by NEPRA. The notice also stated that this would be done keeping in view the proposed targeted subsidy and/or cross-subsidies, which are to be notified in the official gazette through modification in SRO No. 575(I)/2019, as amended from time to time.

The development is significant as it reflects the government’s push to maintain a uniform national electricity tariff framework despite major differences in cost of supply across regions, and comes at a time when consumers are already facing heavy power bills due to rising capacity payments, fixed costs, and increasing fiscal pressure on subsidies.

NEPRA stated that all interested and affected parties may file written comments prior to the hearing or present their views during the hearing as permissible under the law. The Authority also shared that copies of the relevant Act, Rules, Regulations, Codes and the instant motion are available on NEPRA’s official website.

The notice was issued by Wasim Anwar Bhinder, Registrar NEPRA, and also provided participation details for stakeholders through Zoom, indicating that the Authority expects broad engagement on the proposed changes.

It is relevant to mention that the proposed rationalization and inclusion of fixed charges could have a direct impact on consumers’ monthly bills, as higher fixed charges may reduce flexibility for low-consumption households while ensuring recovery of fixed costs for the utilities regardless of consumption levels.

The hearing is expected to draw strong attention from consumer groups, industrial representatives and commercial stakeholders, particularly due to its potential implications for electricity affordability and the future structure of Pakistan’s uniform tariff regime.