Electricity prices may drop by Rs1.93 per unit

ISLAMABAD: Electricity consumers across Pakistan may soon get major relief in their monthly bills as the National Electric Power Regulatory Authority (NEPRA) is considering a reduction of Rs1.93 per unit in power tariffs.

The proposed reduction came under discussion during a public hearing held by NEPRA on Tuesday on quarterly tariff adjustment petitions submitted by power distribution companies for the January-March 2026 period. The regulator is expected to issue its final determination after completing consultations with stakeholders and reviewing the submitted financial data.

According to details presented during the hearing, the proposed relief mainly stems from a sharp decline in capacity charges, which decreased by Rs36.83 billion during the quarter. Use-of-system charges and market operation fees also dropped by Rs11.24 billion, while another Rs23.51 billion reduction has been sought under incremental energy units.

If approved, the adjustment would directly lower electricity costs for consumers across the country, including K-Electric users.

Industry stakeholders welcomed the expected reduction, saying it could provide breathing space to households and businesses already struggling with high operational costs and inflationary pressures.

“Given the global situation, electricity prices have risen in many countries, but local policy has helped avoid increases here,” an industrial consumer told the hearing, urging authorities to continue passing on financial efficiencies to consumers in order to support economic activity.

Industry representative Tanveer Bari described the possible Rs1.93 per unit cut as encouraging and stressed the need for further reforms in the power sector to ensure consumers continue benefiting from operational and financial improvements.

The hearing also highlighted deeper structural challenges facing Pakistan’s electricity sector. Participants pointed out that despite the country having an installed electricity generation capacity of around 45,000 megawatts, actual power generation remains close to 25,000 megawatts, reflecting a significant mismatch between installed capacity and real demand.

Stakeholders questioned long-term planning within the sector and raised concerns over demand management, idle generation assets and rising system inefficiencies.

It was also noted during the proceedings that several old power plants are being phased out as new generation capacity enters the system, adding further pressure on the sector’s transition and financial management.

The proposed quarterly adjustment comes at a time when consumers are closely watching electricity prices amid broader economic challenges. Any reduction in tariffs is likely to be welcomed by domestic consumers, traders and industries alike, particularly during the summer season when electricity consumption usually surges.

NEPRA is expected to announce its final verdict after evaluating all stakeholder input and financial calculations presented during the hearing.