ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has reduced the national average electricity tariff by Rs0.62 per unit for calendar year (CY) 2026 through the rebasing mechanism, fixing it at Rs33.38 per kWh, compared to the previously determined tariff of Rs34.00 per kWh for FY 2025-26.
The reduction is part of the government’s strategy to initiate annual rebasing of consumer-end tariffs of power distribution companies (DISCOs) from the calendar year, with winter considered a lean period due to lower electricity consumption. Officials believe that implementing tariff changes during this period minimizes consumer backlash.
NEPRA determines different consumer-end tariffs for each distribution company (XWDISCO) based on their respective revenue requirements and allowed levels of transmission and distribution (T&D) losses.
In this regard, GEPCO, QESCO, MEPCO, SEPCO, HESCO, PESCO, TESCO and HAZECO had filed their Multi-Year Tariff (MYT) petitions for the period FY 2025-26 to FY 2029-30, which have now been determined by the Authority.
In pursuance of policy guidelines issued by the Ministry of Energy (Power Division), following approval by the Federal Cabinet for annual rebasing of consumer-end tariffs effective from January 1, NEPRA has rebased the tariffs for the period January 2026 to December 2026. The determination, issued on January 7, 2026, has been communicated to the Federal Government for filing of the uniform tariff application.
The total revenue requirement of XWDISCOs for CY 2026 has been projected at Rs3,379 billion, including Rs2,923 billion for power purchase price and Rs456.15 billion for XWDISCOs’ margins and prior year adjustments (PYA), based on projected sales of 101,234 GWh.
Separately, NEPRA has also determined a negative fuel cost adjustment of 93.62 paisa per kWh for November 2025 for consumers of DISCOs and K-Electric
