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ISLAMABAD: The power consumers are expected to receive relief of around Rs 65 billion under the first quarterly tariff adjustment for calendar year 2026, following a hearing held by the National Electric Power Regulatory Authority (NEPRA).
The hearing, chaired by NEPRA Chairman Waseem Mukhtar, reviewed requests submitted by power distribution companies (DISCOs) for the January-March 2026 quarter. Officials told the regulator that consumers could receive a relief of Rs1.93 per unit in electricity prices after adjustments in power sector costs.
During the proceedings, DISCOs reported a decline of Rs36.84 billion in capacity charges during the quarter. System charges and market operation fees also fell by Rs11.24 billion, contributing to the overall reduction in electricity costs.
Data presented at the hearing showed that multiple distribution companies, including Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Tribal Electric Supply Company (TESCO), Quetta Electric Supply Company (QESCO) and Hazara Electric Supply Company (HAZECO), submitted quarterly adjustment requests under the XWDISCOs framework.
Officials from the Power Planning and Monitoring Company (PPMC) said lower electricity purchase prices, reduced capacity payments and improved demand management helped ease pressure on the national power tariff during the quarter. They added that the quarterly adjustment mechanism was designed to align consumer tariffs with actual electricity generation and distribution costs.
NEPRA officials clarified that the authority would issue a final decision after reviewing all financial and technical data submitted by the DISCOs. They also stated that no decision had been taken to withdraw electricity subsidies for any category of consumers.
The officials said the government planned to collect detailed consumer data in the first phase of reforms aimed at improving subsidy targeting. Around 22 million consumers are currently benefiting from electricity subsidies across Pakistan.
Pakistan’s power sector has struggled for years with mounting circular debt, high transmission losses and expensive generation costs. However, recent declines in global fuel prices and ongoing power sector reforms have provided some relief to electricity pricing pressures. The government is also pursuing energy sector restructuring measures under its International Monetary Fund programme to improve financial sustainability and reduce inefficiencies in the sector.
