Government challenges electricity tariff increase of Rs 1.79 per unit


Urges NEPRA to implement uniform tariff framework applicable to state DISCOs and K-Electric

The federal government has filed a review petition with the National Electric Power Regulatory Authority (NEPRA), challenging its decision to increase the average base electricity tariff by Rs 1.79 per unit from January 1, 2026.

In its petition, the government also urged NEPRA to implement a single tariff structure for both state-owned distribution companies (DISCO) and K-Electric, seeking uniformity in electricity prices across the country.

Recently, NEPRA fixed the national average base rate at Rs 33.38 per unit, against the current rate of Rs 31.59 per unit, reflecting an increase of Rs 1.79 per unit. However, the revised tariff remains subject to formal approval by the federal government, to which NEPRA had forwarded its determination following requests from power distribution companies.

According to official sources, the Power Division has formally approached NEPRA to implement a uniform tariff framework applicable to both state DISCOs and K-Electric.

NEPRA is scheduled to hear the government’s review petition on January 12, after which any potential changes to electricity rates will be determined. Officials said the final decision on electricity tariffs will be announced through an official government notification.

Earlier, NEPRA noted that the newly approved tariff of Rs 33.38 per unit is 62 paise lower than the earlier notified tariff of Rs 34 per unit for FY 2025-26.

As determined by NEPRA, the total financial needs of DISCOs for 2026 are estimated at Rs 3,379 billion, of which Rs 2,923 billion is allocated for the purchase of electricity, while Rs 456.15 billion will cover operating costs and profits of distribution companies.

NEPRA further projected that annual electricity sales by 2026 will reach 101 billion units.

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