NEPRA approves ₨67 billion power tariff relief for consumers

The National Electric Power Regulatory Authority (NEPRA) has issued its detailed determination on the quarterly tariff adjustment (QTA), approving a negative adjustment of ₨1.9857 per unit that will provide electricity consumers with relief of ₨67.173 billion through bills issued between June and August 2026.

Under the decision, consumers of power distribution companies (DISCOs) and K-Electric will receive a uniform reduction of ₨1.9857 per kilowatt-hour in their electricity bills over the three-month period.

The relief will be available to all consumer categories except lifeline consumers, consumers billed under the incremental consumption package and prepaid electricity users.

The adjustment relates to the first quarter of calendar year 2026, covering January to March. It stems from variations in power purchase costs, transmission and distribution (T&D) losses, capacity charges, variable operation and maintenance costs, use-of-system charges, market operator fees and other components allowed under the quarterly adjustment mechanism.

NEPRA said the consumer-end tariff for calendar year 2026, including the Power Purchase Price (PPP) reference for ex-WAPDA distribution companies, was determined on January 7, 2026. Following a government motion seeking a uniform consumer-end tariff, the regulator issued its recommendations on January 12, which were notified by the federal government on January 13.

During the adjustment process, the Central Power Purchasing Agency-Guarantee Limited (CPPA-G) informed the regulator of revisions in capacity billed amounts for DISCOs. As a result, distribution companies submitted addendums amounting to ₨63.937 billion to their original claims.

Although the quarterly adjustment mechanism is formula-based, NEPRA conducted a public hearing on May 19, 2026, to allow stakeholders to present their views before the final determination.

The regulator said the adjustment was calculated using data and certifications provided by CPPA-G and DISCOs regarding capacity payments, variable operation and maintenance costs, use-of-system charges, market operator fees, the impact of power purchase prices on incremental consumption and adjustments linked to monthly fuel charges.

NEPRA also resolved differences in the treatment of T&D losses by various distribution companies. While some DISCOs used loss targets approved for calendar year 2026, others relied on targets applicable to fiscal year 2025-26.

The authority ruled that T&D losses approved for FY2025-26 would be used for calculating adjustments for the first and second quarters of calendar year 2026. Loss targets approved for FY2026-27 will be applied to the third and fourth quarters of the year.

The regulator further directed CPPA-G to provide plant-wise capacity charge details for all power plants connected to the national grid in future submissions, noting that consolidated figures had been submitted for WAPDA and the Pakhtunkhwa Energy Development Organization (PEDO).

According to the determination, electricity exported to the grid through net-metering arrangements was accounted for at ₨25.32 per unit, based on the notified national average power purchase price for the January-March 2026 quarter. Energy procured through bilateral arrangements was also included in accordance with rates previously approved by the authority.

After reviewing all cost components, NEPRA approved a net negative adjustment of ₨67.173 billion, which will be passed on to consumers through the uniform reduction of ₨1.9857 per unit.

The regulator also extended the relief to K-Electric consumers, stating that under the NEPRA Act, the National Electricity Policy and federal government policy guidelines, consumers served by the utility would receive the same quarterly adjustment during June, July and August 2026.