Pakistan’s National Electric Power Regulatory Authority (Nepra) has approved a 33-paise per unit increase in electricity tariffs for the three-month period from December to February. The decision comes with a strong rebuke from within the authority itself, highlighting widespread inefficiencies, theft and mismanagement that continue to inflate the cost of electricity for consumers across the country.
Tariff Hike Applied Nationwide, Incremental Package Announced
In its determination, Nepra stated that the higher tariff will apply to all consumers — including K-Electric users — under the Quarterly Tariff Adjustment (QTA) for the first quarter of FY26. The adjustment amounts to Rs6.067 billion, which will be charged to all consumer categories except lifeline and prepaid consumers.
In a separate approval, Nepra authorised the Power Division to implement a discounted incremental tariff package for industrial and agricultural consumers of both ex-Wapda Discos and K-Electric. Under this scheme, the rate for additional electricity units will be reduced to Rs22.98 per unit, reflecting the marginal cost of power supply.
Industrial users currently pay Rs34 per unit while agricultural consumers often face rates as high as Rs38 per unit. The revised tariff aims to reduce production costs and encourage higher consumption to support economic activity. The package will remain effective for three years, with incremental usage measured against consumption levels from December 2023 to November 2024.
The Power Division clarified that the incremental package is subsidy-neutral and will only be affected by positive Fuel Cost Adjustments (FCAs). QTAs, negative FCAs and the Debt Service Surcharge (DSS) will not apply to incremental usage for eligible consumers.
Nepra Member Warns of Deep Systemic Failures
Alongside the tariff decision, Nepra released a hard-hitting note from outgoing technical member Rafique A. Shaikh, who criticised systemic failures in the power sector. He highlighted chronic issues such as the underutilisation of cheaper power plants, excessive capacity payments and high transmission and distribution losses.
Shaikh argued that passing these inefficiency-driven costs onto consumers is unfair and economically damaging. He warned that continued reliance on QTA-based adjustments may lead to an industrial slowdown, reduced GDP growth, higher unemployment and increased pressure on Pakistan’s current account.
He stressed that the financial burden of mismanagement should be borne by the responsible companies and state institutions — not the general public. The QTA data, he noted, clearly shows low plant factors for thermal power plants operating under “Take-or-Pay” capacity contracts, indicating poor planning and operational weaknesses.
Nepra’s latest tariff hike, combined with its internal criticism, underscores the urgent need for structural reforms in Pakistan’s power sector to reduce inefficiencies and protect consumers from escalating energy costs.
