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NEPRA approves Rs1.98/unit cut in electricity tariff for summer months

ISLAMABAD: In a move that will lower electricity bills for millions of households and businesses during the peak summer season, National Electric Power Regulatory Authority (NEPRA) has approved a negative tariff adjustment totaling Rs. 67.173 billion for the first quarter of 2026.

The reduction will be applied to consumers at a uniform rate of Rs. 1.9857 per kilowatt-hour over three months including June, July and August 2026. The relief will be reflected in bills issued during this period, officials said.

The adjustment excludes lifeline consumers, those billed under incremental consumption packages and prepaid users.

The decision applies to consumers of all power distribution companies as well as K-Electric, which serves Karachi and surrounding areas.

The adjustment stems from variations in several cost components, including capacity charges, variable operations and maintenance, use of system charges, market operator fees, fuel cost adjustment impacts on transmission and distribution losses, and recovery of power purchase price on incremental units, NEPRA said in its notification.

During a public hearing on the matter, some commentators urged the authority to time the adjustment to offset anticipated positive fuel charge adjustments in the coming months. Others commended recent operational improvements in the power sector, including the use of efficient power plants running on natural gas instead of more expensive Re-gasified Liquefied Natural Gas.

The authority directed distribution companies to provide more detailed sales and load factor analyses in future quarterly adjustment requests. It also warned that the Central Power Purchasing Agency Guarantee Ltd. would be held responsible for any errors or omissions in the data used for the adjustment.

NEPRA emphasized that the decision is subject to compliance with any court orders. If bills for the adjustment period were issued before the notification’s publication, the reduction must be applied in the following month, the authority said.

The regulator first determined consumer-end tariffs for calendar year 2026 on Jan. 7, 2026. Distribution companies filed their quarterly adjustment requests based on actual power purchase costs from January through March 2026.

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