Islamabad The Power Division said on Tuesday that consumers were provided relief amounting to Rs46.56 billion during the first eight months (July–February 2025-26.
According to an official statement issued after a public hearing on the Fuel Charges Adjustment (FCA) for February 2026, the Power Division stated that the National Electric Power Regulatory Authority (NEPRA) determines the base tariff, which is subsequently notified by the federal government after incorporating applicable subsidies.
Tariff projections are based on multiple variables, including fuel prices, exchange rates, demand patterns, and the generation mix. While prudent assumptions and the best available estimates are used to minimise variations, these factors remain inherently uncertain and largely beyond the control of the regulator, distribution companies (DISCOs), and the government. In particular, fluctuations in international fuel prices and supply disruptions continue to significantly impact power generation costs—a challenge being faced globally.
Contrary to concerns regarding tariff increases through periodic adjustments, the data indicate a net relief for consumers. During FY 2025–26 (July–February), cumulative relief of Rs13.28 billion and Rs33.29 billion was passed on to consumers through Fuel Charges Adjustments (FCA) and Quarterly Tariff Adjustments (QTA), respectively.
While the FCA for January and February 2026 reflects an increase of Rs21.18 billion—primarily due to higher demand and the forced outage of K-3—the QTA for the same period shows a negative adjustment of Rs48 billion, resulting in a net relief of Rs26.85 billion for consumers during these two months. Overall, total relief during FY 2025–26 (July–February) amounts to Rs46.56 billion, translating into a reduction of Rs0.71 per kWh in end-user tariffs.
Furthermore, industrial tariffs (pre-tax) have declined significantly from Rs49.19 per unit (18 cents) in March 2024 to Rs34.75 per unit (12 cents) in March 2026, reflecting a substantial reduction of Rs14.44 per unit.
The government remains fully cognisant of ongoing international fuel price volatility and supply constraints. In coordination with relevant stakeholders, efforts are underway to mitigate these impacts and protect consumers from undue financial burden going forward.
