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ISLAMABAD: For millions of electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has reduced the national average uniform electricity tariff by 62 paise per unit for the calendar year 2026 (January to December), bringing it down to Rs 33.38 per kWh from the previous Rs 34.00 per kWh applicable in the fiscal year 2025-26.
The reduction, effective from January 1, 2026, comes as part of the regulator’s annual rebasing of consumer-end tariffs, following a shift from fiscal-year to calendar-year tariff determination as per government policy. NEPRA has issued its determination, after reviewing multi-year tariff petitions and aligning with guidelines from the Ministry of Energy (Power Division) and approval from the federal cabinet.
NEPRA has determined separate consumer-end tariffs for each ex-WAPDA Distribution Company (XWDISCO), accounting for their individual revenue requirements and varying levels of allowed transmission and distribution (T&D) losses. This customized approach ensures fairness while addressing inefficiencies in different regions.
Key distribution companies that submitted multi-year tariff (MYT) petitions for the period FY 2025-26 to 2029-30 include Gujranwala Electric Power Company (GEPCO), Quetta Electric Supply Company (QESCO), Multan Electric Power Company (MEPCO), Sukkur Electric Power Company (SEPCO), Hyderabad Electric Supply Company (HESCO), Peshawar Electric Supply Company (PESCO), Tribal Electric Supply Company (TESCO) and Hazara Electric Supply Company (HAZECO)
The regulator has now finalized these petitions, paving the way for long-term tariff stability in these areas. The total projected revenue requirement for ex-WAPDA DISCOs in CY 2026 stands at Rs3.379 trillion, based on anticipated sales of 101,234 gigawatt-hours (GWh). This breaks down as Rs2.923 trillion for power purchase costs and Rs 456.15 billion for DISCOs’ operational margins, prior-year adjustments, and other allowable expenses
The determined tariffs have been forwarded to the federal government, which will now file an application for a uniform national tariff to ensure consistency across all consumer categories and regions, including subsidies where applicable.
While the base tariff reduction offers modest relief amid ongoing economic pressures and high inflation, consumers will continue to benefit from separate monthly fuel cost adjustments (FCA) and quarterly revisions. Recent FCA decisions have already provided additional cuts, further easing the burden on households and businesses.
Industry experts view this rebasing as a positive step toward rationalizing power sector costs, though calls persist for deeper structural reforms to reduce circular debt and improve efficiency in distribution companies.
