ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued complete decision about QTA negative adjustment of Rs 1.9857/ kWh for Discos and KE to be passed on in the bills of of June, July and August 2026.
According to the decision, the Authority determined consumer-end tariff for CY 2026, including Power Purchase Price (PPP) reference for WDISCOs, on 07 January 2026, and intimated the same to the Federal Government. The Federal Government, against the aforementioned determinations/decisions, filed Motion, under Section 7 and 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act) read with Rule 17 of the NEPRA (Tariff Standards and Procedure) Rules, 1998 (Tariff Rules) for recommendation of uniform consumer end tariff. The Motion was decided by the Authority on 12 January 2026 and was subsequently notified by the Federal Government on 13 January 2026.
DISCOs, in accordance with the NEPRA Act and quarterly adjustment mechanism as prescribed in their tariff determinations, filed adjustment requests on account of variation in PPP, including impact of T&D losses etc., for the 1st quarter of the CY 2026 i.e. January to March 2026. Central Power Purchasing Agency (Guarantee) Limited (CPPAGL) informed about certain variations in the capacity billed amount for WDISCOs, having consequential impact on the quarterly adjustments requested by DISCQs. Accordingly, all WDISCOs, submitted addendums of Rs 63.937 billion to their earlier requests.
Whilst the proposed quarterly adjustments are formula based, and as per the mechanism prescribed in the tariff determinations of DISCOs, however, as the impact of any such adjustments is made part of the consumer end tariff, therefore, the Authority, in order to reach an informed decision and to meet the ends of natural justice, decided to conduct a hearing in the matter.
The hearing was scheduled on May 19, 026, for which advertisement was published in newspapers on 06 May 2026. Separate. notices were also sent to the stakeholders, considered relevant, for inviting comments. Salient features of the proposed adjustments along-with adjustment requests/addendums of all DISCOs were uploaded on NEPRA’s website for information of all concerned.
During the hearing, the DISCOs presented their information before the Authority, along with the resulting variances ‘forming the basis of their quarterly adjustment claims.
For the purpose of determination of the 1st quarterly adjustment of CY 2026, the information along with the certification provided by CPPAGL has been relied upon. In case any variation, error, omission, or misstatement is identified at a later stage, CPPAGL shall be held responsible, and the impact arising therefrom shall be adjusted in the subsequent quarterly adjustments.
The Authority noted that, in respect of WAPDA and PEDO, consolidated figures had been provided instead of plant-wise breakups. CPPAGL is hereby directed to ensure that, in future, plant-wise details of capacity charges are provided for each month of the quarter for all plants connected with the National Grid.
Cost of net-metering units exported to WDISCOs system by consumers have been accounted for @ Rs.25.32/kWh, as per the Notified National Average Power Purchase Price for the quarter January to March 2026 based on Power Purchase Price decision notified from January 01, 2026. Similarly, the cost of energy procured through other bilateral arrangements, excluding fuel cost, has been considered in accordance with the rates approved by the Authority.
According to NEPRA, for working out the instant QTA, the DISCOs adopted different approaches with respect to T&D losses. Certain DISCOs calculated the QTA based on T&D losses pertaining to CY 2026, while others used the T&D losses applicable to FY 2025-26. Since T&D losses are assessed and approved by the Authority on a financial year basis, and the reflection of average T&D losses in the calendar year tariff is only for calculation of average consumer-end tariff purposes, therefore, the instant QTA has been worked out using the T&D loss targets approved for FY 2025-26. This approach has been adopted considering that the instant quarter falls within the FY 2025-26 T&I) loss target period as per the approved Investment Plan. Accordingly, for the and 2 quarters of CY 2026, the relevant T&D losses shall be those approved for FY 2025-26, whereas for the 3Id and 4th quarters of CY 2026, the T&D losses approved by the Authority for FY 2026-27 shall be applicable.
For determination of the quarterly adjustment for the Pt quarter of CY 2026, the Authority considered and taken into account the data and information submitted by CPPAGL and the WDISCOs regarding capacity charges, variable O&M, use of system charges, and market operator fee, impact of PPP on incremental consumption, while the impact of T&D losses pertaining to monthly FCAs was computed in accordance with the Authority’s approved monthly decisions for the relevant months.
It is pertinent to note that, consistent with past practice and considering that the adjustment is being made in the already notified uniform tariff, the Authority, in addition to determining DISCO-wise quarterly adjustment rates, has also decided to approve a uniform quarterly adjustment rate, which shall be applied to the consumers.
Based on the discussion made in the above paragraphs, the Authority has decided to approve an overall negative adjustment of Rs. 67.173 billion on account of variation in capacity charges, variable O&M, use of system charges, market operator fee, FCA impact on T&D losses and recovery of PPP on incremental units for the 15t quarter of CY 2026. The determined rate will be Rs 1.9857 kWh.
The negative adjustments will be provided in a period of 03 months i.e. from June, July and August 2026, at a uniform rate of (Rs.1 .9857/kWh), to be applicable to all consumer categories, except lifeline consumers, units billed for incremental consumption package, and prepaid consumers.
In view of relevant provisions of NEPRA Act, NE Policy and Policy Guidelines issued by the Federal Government, the Authority has decided to allow the application of instant quarterly adjustments on the consumers of K-Electric as well, with the same applicability period. Accordingly, the instant negative quarterly adjustment of(Rs.1.9857/kWh) shall also be provided to the consumers of K-Electric except life line, Incremental consumption package billed units and prepaid consumers, to be passed in a period of 03 months i.e. June, July and August 2026. Ends
