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NEPRA Raises Power Tariff to Rs25.30 Per Unit

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Electricity transmission towers in Pakistan
Photo: Dawn

Electricity bills across Pakistan will climb again in November after the power regulator approved a higher rate for industrial users and an extra fuel charge for every consumer.

The National Electric Power Regulatory Authority (Nepra) announced the decision on Friday, revising a special incentive package for industry and clearing an additional Rs2.37 per unit in November bills under the monthly fuel cost adjustment.

New Industrial Power Rate

At the centre of the decision sits the incremental support package, a special rate introduced in December 2025 to encourage factories to draw more power from the national grid. Nepra has now lifted that rate from Rs22.98 to Rs25.30 per unit, an increase of Rs2.32, or about 10 per cent.

The revised rate applies from the November 2026 billing month to eligible industrial and private agricultural consumers of ex-Wapda distribution companies and K-Electric. Nepra stressed that Rs25.30 remains a provisional figure, not a final finding on what incremental power actually costs to supply.

Industrialists have protested the package since May, arguing it failed to deliver promised relief and pushed their bills higher instead. A review was due after the package completed its first six months in June, but the Power Division submitted its request late dItemespite repeated reminders from the regulator.

November Bills Carry Extra Fuel Charge

Separately, Nepra allowed distribution companies to add Rs2.3673 per unit to November bills as fuel cost adjustment for electricity consumed in September 2026. The charge will recover roughly Rs25 billion.

September fuel costs came in at Rs9.8268 per unit, against a reference cost of Rs7.4596 built into tariffs. The Central Power Purchasing Agency had sought a higher adjustment of Rs2.5624 per unit.

Most consumer categories will pay the extra charge. Lifeline consumers, electric vehicle charging stations and prepaid-tariff customers stay exempt. Where a November bill went out before the notification took effect, the amount will appear in a later month.

Regulator Split Over Revised Rate

The authority split 2–2 on the revised rate. Member Tariff Amina Ahmed and Member Development Maqsood Anwar opposed it in a joint dissenting note, calling Rs25.30 a “random number” with no evidence behind it. Their own calculations put the actual marginal cost at Rs31.83 per unit.

Both members urged an immediate suspension of the package until authentic cost data became available. They argued that ordinary consumers should not carry the cost of a review the Ministry of Energy was supposed to submit five months ago.

Chairman Waseem Mukhtar endorsed the dissenters’ arguments in writing, then used his casting vote to approve the revised rate. He said suspending the package now would not be appropriate and the ministry deserved another chance to supply the missing information.

Why Power Division Faces Deadlines

All four members held the Power Division responsible for missing legal deadlines, a failure that pushed Nepra into an unprecedented deadlock. Neither the Independent System and Market Operator nor the Power Planning and Monitoring Company supplied marginal price calculations in proper form, although both were duty-bound to do so.

Nepra has now set firm deadlines. Available data and analysis fall due on November 25, with remaining data for November 16–30 due on December 3. Failure to meet those dates could bring suspension or termination of the programme, and legal proceedings against any entity that misses its deadline.

The Rs25.30 figure came from the Power Planning and Monitoring Company, based on a generation mix of 50 per cent spot RLNG cargoes and 50 per cent contracted Qatar RLNG. Its notional estimate for the review period stood at Rs29.65 per unit, with monthly figures reaching Rs42.01 in April and Rs49.65 in May.

Table — New Power Rates

ItemBeforeNow
Industrial incremental rateRs22.98 per unitRs25.30 per unit
Fuel cost adjustment (November bills)—Rs2.37 per unit
Recovery through fuel adjustment—Rs25 billion
Actual marginal cost (Nepra calculation)—Rs31.83 per unit

FAQs

How Much Will November Bills Rise?

Every consumer pays an extra Rs2.37 per unit in November bills under the fuel cost adjustment, on top of the higher industrial rate for eligible factories.

Who Pays Extra Fuel Charge?

All consumers of ex-Wapda distribution companies and K-Electric pay it, except lifeline consumers, electric vehicle charging stations and prepaid-tariff customers.

Which Rate Applies to Industry?

Eligible industrial and private agricultural consumers pay Rs25.30 per unit on consumption above their reference level, up from Rs22.98.

When Does New Rate Apply?

From the November 2026 billing month. Nepra rejected applying it back to October, since October billing was largely complete.

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