Nepra reduces energy tariffs for consumers nationwide under FCA

• Reduction applies to January bills due to November FCA.
• Lifeline consumers exempt from tariff relief: notice.
• The financial needs of Discos for 2026 are estimated at Rs 3,379 billion.

The National Electricity Regulatory Authority (Nepra) has announced a reduction in electricity tariffs by 93 paisa per unit after issuing a notification applicable to consumers across the country.

According to the statement, the reduction was decided due to a fuel cost adjustment for November and will be passed on to consumers through January electricity bills.

He said the relief is applicable to all categories of consumers nationwide, including Karachi. However, the authority clarified that lifeline consumers will not benefit from the reduction.

This reduction came a week after the Central Power Purchase Authority (CPPA) asked Nepra to refund Rs 0.72/unit to consumers in January bills, potentially giving consumers a relief of over Rs 5.6 billion.

Fuel price adjustments are reviewed monthly by Nepra to reflect changes in global fuel prices and production costs, with the impact passed on to consumers through subsequent pricing cycles.

The average base tariff for 2026 has been issued

Meanwhile, the authority also unveiled the new average base tariff for January-December 2026, setting it at Rs 33.38 per unit, bringing modest relief to consumers after years of relentless hikes.

Notably, the government has shifted tariff setting from a financial year basis to a calendar year framework and the revised consumer tariff will come into effect from January 1, 2026.

Nepra noted that the new tariff is 62 paisa lower compared to the July-December 2025 rate, while the average tariff for FY 2025-26 was Rs 34 per unit.

It should be noted that currently, the country’s base tariff stands at Rs 31.59 per unit, which means the newly notified price is Rs 1.79 per unit higher than the existing base charge.

The total financial requirement of distribution companies (Discos) for 2026 is estimated at Rs 3,379 billion, including Rs 2,923 billion for power supply and Rs 456.15 billion for operating expenses and margins.

The authority added that annual electricity sales for the year are forecast at 101 billion units and the new tariff will ensure cost recovery while meeting the sector’s financial needs.