NEPRA okays revised uniform tariff for DISCOs /KE for FY 2025-26

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Tuesday approved, in principle, a revised average uniform Schedule of Tariff (SoT) of Rs 31.59/kWh for power Distribution Companies (DISCOs) and K-Electric (KE) for FY 2025-26, amid serious concerns over the performance of DISCOs.
The revised tariff reflects a reduction from Rs 32.73/kWh, with an average cut of Rs 1.14/kWh, following the incorporation of a Tariff Differential Subsidy (TDS) of Rs 250 billion. Additionally, NEPRA has reduced the uniform average tariff from Rs 35.50/kWh to Rs 34/kWh, showing a cut of Rs 1.50 per unit.
The public hearing was chaired by NEPRA Member (Technical) Rafique Ahmad Shaikh, and Member (KPK) Maqsood Anwar Khan (Development). It was convened hastily, drawing criticism for limited public accessibility due to its timing on a public holiday.
The Power Division was represented by Additional Secretary (Power Finance) Mehfooz Bhatti, while Naveed Qaiser from the Power Planning and Monitoring Company (PPMC) briefed participants on the tariff rebasing and responded to questions.
According to official documents, all consumer categories will receive an average relief of Rs 1.14/kWh, though the Power Division representative declined to acknowledge the expiry of the Prime Minister’s Rs 7.50/kWh relief. Instead, he stated that upcoming relief would consist of: Rs 1.15/unit reduction via base tariff, Rs 0.45/unit through elimination of PTV fee, Rs 0.90/unit from discontinuation of electricity duty by provinces.
“Government’s uniform average tariff is Rs 31.59/kWh for FY 2025-26 against NEPRA’s determined rate of Rs 34/unit,” said Naveed, requesting approval for the rebased uniform tariff to pass on the benefit to consumers.
During the hearing, Rehan Jawed of the FPCCI rejected the proposed uniform tariff motion, calling the current industrial tariff structure flawed and demanding that future designs involve industrial stakeholders.
Ayaz Jaffer, Director Finance at KE, requested alignment of KE’s tariff with NEPRA’s latest determinations. However, a Power Division representative said the federal government has challenged KE’s tariff in court. He maintained that under the existing TDS agreement, KE retains the legal right to file TDS claims.
NEPRA’s legal counsel Mian Ibrahim firmly stated that the Power Division lacks legal authority to override NEPRA’s tariff determinations.
Meanwhile, Arif Bilwani criticized NEPRA for scheduling the hearing on a public holiday, limiting transparency and consumer engagement.
Aamir Sheikh, representing the industrial sector, warned that while the new tariff brings a nominal Rs 1.15/unit reduction, the expiration of the PM’s Rs 6/unit relief in June, and an additional Rs 1.55/unit ending in July, would effectively increase the tariff by Rs 5/unit for industries. He urged the Prime Minister to utilize the Carbon Levy on furnace oil and the gas levy to offer continued relief.
Tanveer Barry of the Karachi Chamber of Commerce and Industry (KCCI) protested the short one-day notice for the hearing and recommended at least a 7-day window for feedback. He also criticized the imposition of a Rs 3.23/kWh circular debt surcharge, calling it contradictory to earlier government commitments of post-IPP negotiation relief.
Barry further urged NEPRA to abolish peak/off-peak hours for uninterrupted industrial operation,
Reduce fixed charges, lift the 1MW cap on net metering for industries, ensure new industrial connections or load enhancements are completed within 30 days.
NEPRA Member (Tech) raised serious concerns over DISCO performance, especially fudging meter readings to inflate consumer bills. Ongoing inquiries, including one into SEPCO, were cited.
Dr. Kashif, CEO of PITC, presented the “Apna Meter, Apni Reading” mobile app, intended to empower consumers and tackle overbilling.
On solarization, the Power Division requested NEPRA’s support, arguing that net metering consumers are being cross-subsidized by others, necessitating policy reform. Ends