Rs63.94bn negative QTA filed as power bills set for Rs1.75/unit relief

Electricity consumers nationwide are poised for a temporary relief of around Rs1.75 per unit for three months, following a Rs63.94 billion negative quarterly tariff adjustment (QTA) filed by distribution companies (Discos) for the January–March 2026 quarter.

The request is under review by the National Electric Power Regulatory Authority (Nepra), which will hold a public hearing on May 19.

According to the filings, the expected relief is driven mainly by Rs64 billion in savings during the first quarter of 2026, largely due to lower capacity charges paid to power producers. The capacity charge impact alone is estimated at Rs37 billion.

The savings profile is partly reduced by Rs4.876 billion in higher operations and maintenance costs and Rs2.8 billion linked to system losses affecting fuel cost adjustments. These are offset by Rs11.24 billion in service and market operator fee efficiencies and Rs23.5 billion from the government’s incremental consumption package for industrial and agricultural users, producing net consumer savings of Rs63.94 billion.

All 11 Discos have submitted negative QTA requests. Faisalabad Electric Supply Company leads the list with Rs10.45 billion, followed by Hyderabad at Rs10.14 billion, Peshawar at Rs8.63 billion, and Lahore at Rs7.9 billion.

Islamabad and Multan have proposed refunds of Rs6.37 billion and Rs6.33 billion respectively. Gujranwala stands at Rs5.1 billion, Tribal Electric Supply Company at Rs3 billion, Sukkur at Rs2.9 billion, Quetta at Rs2.6 billion, and Hazara Electric Supply Company at Rs495 million.

Consumers are currently paying a positive QTA of 42 paisa per unit due to Rs10.8 billion in costs from the October–December 2025 quarter. That charge expires next month and is expected to be replaced by the proposed negative adjustment.

If approved, the net impact would translate into a reduction of about Rs2.15 per unit, although monthly fuel cost adjustments tied to imported fuel prices could partially offset the relief.

The revised tariff framework, effective from January 1, 2026, has shifted quarterly adjustments from a fiscal-year to a calendar-year basis, covering capacity payments, power purchase costs, transmission charges, and distribution losses.

Once implemented, the adjustment will apply across all Discos and K-Electric, excluding consumers under the incremental consumption tariff package, which is exempt from QTA and related surcharges.