The National Electric Power Regulatory Authority (Nepra) has imposed an additional financial burden of nearly Rs. 23 billion on electricity consumers after approving higher fuel costs and tariff adjustments that will reflect in upcoming monthly bills. The increase comes amid continued pressure on Pakistan’s power sector due to rising generation expenses and energy market volatility.
According to a late-night notification issued by the regulator, electricity tariffs will increase by Rs. 1.98 per unit in March 2026. The hike includes a Rs. 1.63 per unit rise under the fuel cost adjustment (FCA) for January 2026 and an additional Rs. 0.35 per unit under the quarterly tariff adjustment (QTA), which will be recovered gradually over three months.
Officials estimate that the fuel cost adjustment alone will generate approximately Rs. 14 billion in additional revenue during March, while around Rs. 8.7 billion will be recovered through the quarterly adjustment period. These revisions are part of the regulatory mechanism designed to align electricity prices with fluctuating fuel and capacity costs.
Nepra stated that the Rs. 1.6274 per kWh FCA will apply to most consumer categories served by K-Electric and former WAPDA distribution companies. However, lifeline consumers, electric vehicle charging stations, and prepaid electricity users operating under prepaid tariff systems have been exempted from the increase.
The regulator noted that electricity supplied from the national grid to K-Electric helped reduce the overall tariff impact. Without this additional supply, the adjustment could have reached Rs. 3.88 per unit, combining higher fuel charges and quarterly capacity purchase price increases, significantly raising consumer bills.
Nepra further explained that electricity consumption exceeding 1,100 GWh under the incremental consumption package required power generation from marginal plants, which carry higher production costs. Despite the short-term increase, the regulator indicated that improved electricity sales could strengthen capacity cost recovery and potentially support more favorable tariff adjustments later in the quarter.
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