Nepra Approves Temporary Electricity Tariff Hike

Pakistan’s power regulator National Electric Power Regulatory Authority (Nepra) has approved a temporary increase of Rs0.35 per unit in electricity tariffs for three months to allow power companies to recover Rs8.67 billion from consumers. The adjustment will apply from March to May under quarterly tariff adjustments for the second quarter of fiscal year 2025–26. Who Will Be Affected? The increase will apply to consumers of power distribution companies and K-Electric, but several groups will remain exempt. Not affected: Lifeline consumers Users under incremental consumption packages Prepaid electricity customers Reason for the Increase Nepra said the tariff adjustment resulted from several cost variations, including: Capacity charges Variable operations and maintenance (O&M) costs Use of system charges Market operator fees Transmission and distribution losses Recovery of previous payments linked to incremental consumption Lower Than Requested Power distribution companies initially requested approval to recover Rs10.83 billion for the quarter. However, after accounting for negative adjustments — including reductions in system charges and operational costs — Nepra reduced the approved recovery amount to Rs8.67 billion. Impact on Consumers The hike is expected to slightly increase electricity bills for most consumers over the next three months, though the regulator said the adjustment aims to balance operational costs in the power sector.