NEPRA Cuts Power Tariff, Electricity Bills to Drop

NEPRA – National Electric Power Regulatory Authority has announced a reduction in the base electricity tariff for the fiscal year 2025–26, bringing it down by Rs. 1.49 per unit to Rs. 34.01. This adjustment follows last year’s steep hike of Rs. 5.72 per unit and is expected to offer some relief to both consumers and businesses.

The lower tariff is largely the result of successful renegotiations with independent power producers, decreasing energy prices, and a projected 2.8 percent increase in demand. NEPRA has approved a total revenue requirement of Rs. 3.52 trillion for the ex-WAPDA distribution companies. Out of this, Rs. 3.07 trillion is allocated to the power purchase price, while Rs. 454 billion will go toward covering distribution margins and losses.

Despite the downward tariff revision, some inefficiencies remain. Imported coal plants are set to run at just 24 percent capacity in FY26 but will still cost Rs. 61.43 per unit due to high dollar-indexed returns.

Capacity charges alone account for Rs. 1.94 trillion of the power purchase cost, with energy and operational costs making up the remaining Rs. 1.13 trillion. For XWDiscos, the average cost before losses comes to Rs. 26.34 per unit, while the national average stands slightly lower at Rs. 25.98 per unit, including K-Electric.