Electricity tariff may drop by Rs1.75 per unit

Shafaqna Pakistan: Electricity prices in Pakistan are expected to decrease by up to Rs1.75 per unit, according to sources, offering relief to consumers through quarterly adjustments.

Consumers are likely to receive relief ranging from over Rs63 billion to around Rs93 million, which will be passed on through the quarterly tariff adjustment mechanism. A formal request for this adjustment has been submitted to the National Electric Power Regulatory Authority (NEPRA) by electricity distribution companies (DISCOs).

The relief is expected to be reflected in the first quarter of 2026, with NEPRA scheduled to hear the case on May 19.

Under the revised system, tariff setting will shift to a calendar-year basis starting January 1, 2026, replacing the previous fiscal-year adjustment cycle. The hearing has been called following a request from former WAPDA distribution companies seeking a Rs63.94 billion refund to consumers under the quarterly tariff adjustment mechanism.

The refund is estimated to result in a negative QTA of about Rs1.75 per unit for three billing months.

Consumers are currently paying about 42 paisa per unit in positive QTA on account of higher costs of Rs10.8 billion for the fourth quarter (October–December 2025), which expires by the end of next month. This will be replaced by a negative QTA for the following three months, resulting in a net reduction of about Rs2.15 per unit.

This impact may be partially diluted by higher monthly fuel cost adjustments due to expensive fuel imports.

Source: Dunya News

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