Another power price shock? Electricity tariff may go up again

ISLAMABAD: Electricity consumers may face an increase of Rs0.48 per unit in power tariffs for one month, after the Central Power Purchasing Agency (CPPA) filed a request seeking approval for a monthly fuel price adjustment.

According to the application submitted to the National Electric Power Regulatory Authority (Nepra), the regulator is scheduled to hear the petition on January 29.

The CPPA stated that a total of 8.487 billion units of electricity were generated in December, out of which 8.208 billion units were supplied to distribution companies (DISCOs). The cost of electricity generation during the month stood at Rs9.62 per unit, the application said.

The request also provided a breakdown of power generation sources during December. Hydropower accounted for 18.07 per cent of total electricity generation, while 13.99pc came from local coal and 10.13pc from imported coal.

Electricity generation from natural gas stood at 11.20pc, while imported liquefied natural gas (LNG) contributed 17.24pc. Nuclear power remained a major source, accounting for 25.05pc of total electricity generation during the month.

If approved by Nepra, the increase under the fuel price adjustment mechanism would be passed on to consumers in their electricity bills for the applicable month.

NEPRA approves uniform electricity tariff across Pakistan

Earlier this week, NEPRA had approved the federal government’s request to introduce a uniform electricity tariff across Pakistan, applying the same rate structure to consumers served by both distribution companies and K-Electric. The request, submitted on January 1, 2026, sought to replace previously separate tariffs with a single nationwide framework for domestic, commercial and industrial users.

Under the approved decision, basic electricity tariffs will remain unchanged, ensuring that the move does not immediately increase base rates. Domestic consumers will continue to pay Rs47.69 per unit, while lifeline users consuming up to 50 units per month will be charged Rs3.95 per unit, and those using 51–100 units will pay Rs7.74 per unit.

Protected domestic consumers will pay Rs10.54 per unit for 1–100 units and Rs13.01 per unit for 101–200 units. For non-protected consumers, rates will rise progressively with usage, starting from Rs22.44 per unit for the first 100 units and reaching Rs47.69 per unit for consumption above 700 units.

NEPRA said the uniform tariff would bring consistency and equity to electricity pricing nationwide. The approval follows the regulator’s earlier decision to reduce the basic electricity tariff by 62 paisa per unit for 2026, and has now been forwarded to the federal government for implementation.