Pakistan’s power regulator introduces Rs200–675 fixed monthly charges for domestic consumers

ISLAMABAD: In a major tariff rationalisation decision, National Electric Power Regulatory Authority NEPRA has introduced fixed monthly electricity charges ranging from Rs200 to Rs675 for domestic consumers, a move expected to increase bills for low-use households while stabilising revenue recovery.

The NEPRA has approved a broad restructuring of electricity tariffs for ex-WAPDA DISCOs and K-Electric, introducing fixed monthly charges across domestic categories that will apply regardless of electricity usage, changing how household bills are calculated.

According to industry sources, the fixed monthly charges will apply to over 28.5 million residential consumers and are expected to generate approximately Rs101 billion.

Under NEPRA’s decision, most domestic categories will now pay fixed charges. The highest fixed charge will be Rs675 per month for consumers using above 600 units. Protected domestic consumers will pay Rs200 and Rs300, while non-protected consumers will face fixed charges ranging from Rs275 to Rs675 depending on monthly consumption.

Protected consumers using up to 100 units will pay Rs200 per month, while those using up to 200 units will pay Rs300. Lifeline consumers remain exempt from fixed charges.

For non-protected consumers, fixed charges start at Rs275 for up to 100 units and rise to Rs400 for up to 200 units. Consumers using 201 to 300 units will pay Rs550, those using 301 to 400 units will pay Rs600, 401 to 500 units Rs650, and above 600 units Rs675.

The introduction of fixed charges marks a shift from the traditional billing system, where cost recovery was primarily linked to per-unit consumption. Under the new structure, distribution companies will recover part of their revenue through fixed charges even if consumption declines due to energy efficiency or rooftop solar adoption.

Power sector experts say the mechanism may disproportionately affect low-consumption households, as consumers will now pay a mandatory amount even when usage is minimal. This could impact small families and households that have reduced grid dependency.

Officials maintain the policy addresses the gap between rising fixed system costs and declining electricity sales. Capacity payments, transmission and distribution maintenance, and system operations require stable funding, and the regulator aims to ensure predictable revenue recovery.

Analysts note that the change may alter consumer behaviour, as reducing consumption will no longer lower bills to the same extent. The move represents a structural shift toward fixed-cost recovery in electricity pricing.

The decision is expected to draw public debate, as fixed charges of up to Rs675 per month will now be a permanent component of domestic electricity bills.