Nepra reduces electricity charges for three months

• Regulator allows Rs1. 19 per unit FCA collection in June bills • Grants Rs1. 99 per unit reduction for three months, until August ISLAMABAD: The National Ele­­ctric Power Regulatory Autho­rity (Nepra) on Thursday notified about 80 paisa per unit net reduction in national power rates for June and then Rs1. 99 per unit for July and August, with a cumulative financial impact of about Rs56 billion. The unusual relief over the three months — June to August — has resulted owing to the combined effect of two concurrent tariff adjustments — one for the monthly fuel cost for April and another for quarterly tariff adjustments for the first quarter (January-March 2026). In its first determination relating to the monthly fuel cost adjustment for the consumption month of April, Nepra worked out and notified Rs1. 19 per unit increase in fuel costs to be recovered from consumers in the current month’s (June) billing, with an additional fiscal gain to distribution companies (Discos) of Rs11bn. Nepra “has decided that positive FCA for April 2026 i. e (Rs1. 1907/kWh). .. shall be applicable to all the consumer categories of KE and XWDISCOs except lifeline consumers, Electric Vehicle Charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff”, the notification read. It adds that positive FCA shall also apply to consumption falling under the incremental consumption package, and Discos and KE shall reflect the FCA in respect of April in the billing month of June. The Discos had demanded Rs1. 74 per additional fuel cost to mop up Rs16bn more funds from consumers but the regulator scaled it down. Simultaneously, in its second determination under quarterly tariff adjustment (QTA) for the January-March period, Nepra notified Rs1. 99 per unit reduction in rates with a total financial impact of Rs67bn over three months — June, July and August. The adjustments will be applicable to all consumer categories, except lifeline consumers, units billed for incremental consumption package, and prepaid consumers, the notification read. The Discos had proposed Rs64bn refund to consumers under QTA at the rate of about Rs1. 75 per unit. As such and with concurrent application of both notifications, the consumers would get a net relief of about Rs56bn over three months. Practically, therefore, the consumer’s rates would be down by about 80 paisa per unit in June i. e. application of Rs1. 99 per QTA reduction minus Rs1. 19 per unit increase in FCA. The negative Rs1. 99 per unit QTA would then continue for July and August. The net financial impact of two decisions would thus work out at Rs56bn in favour of consumers i. e. Rs67bn in relief over three months, minus Rs11bn in additional fuel cost for current month. The lower QTAs have chiefly emerged on account of adjustments in capacity charges, transmission charges and market operator fee, the impact of incremental consumption package announced by the government for industrial and agricultural consumers for three years, besides the impact of transmission and distribution losses on monthly fuel costs and variable operations and maintenance charges for the 1st quarter of CY2026 i. e. Jan to March 2026. Published in Dawn, June 5th, 2026

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