ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has allowed a net relief of about Re 0.80 per unit for electricity consumers of distribution companies and K-Electric, combining a negative quarterly tariff adjustment (QTA) with a positive monthly fuel charges adjustment (FCA).
The Authority approved a negative QTA of Rs 1.9857 per kWh for the first quarter (January–March) of calendar year 2026, while allowing a positive FCA of Rs 1.19 per kWh for April 2026 to recover an additional amount of over Rs 11 billion. The Central Power Purchasing Agency-Guaranteed (CPPA-G) had sought a higher FCA of Rs 1.73 per kWh.
A hearing in the matter was held on June 2, 2026 at NEPRA headquarters.
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After incorporating various adjustments, NEPRA determined that the actual national average uniform fuel cost component (FCC) for April 2026 stood at Rs 9.4405 per kWh, as against the reference FCC of Rs 8.2498 per kWh, resulting in the approved increase.
The Authority stated that separate FCAs for each DISCO were worked out after accounting for energy procured from CPPA-G, bilateral contracts (SPPs/CPPs), and net metering within the respective baskets of each DISCO. However, in line with the uniform tariff regime envisaged under the NEPRA Act, National Electricity Policy, and Plan, a national average uniform FCA has been computed to be charged from all consumers of DISCOs.
The adjustment will be applicable to all consumer categories of DISCOs and KE, except lifeline consumers, electric vehicle charging stations (EVCS), and prepaid consumers who have opted for prepaid tariffs.
The amount will be shown separately in consumers’ bills based on units consumed in April 2026. In case any June 2026 bills are issued before notification of this decision, the adjustment will be applied in subsequent billing cycles.
Quarterly Tariff Adjustment
DISCOs had sought a cumulative negative adjustment of Rs 67.173 billion for the first quarter of 2026. The hearing, held on May 19, 2026, was attended by DISCOs, CPPA-G, and other stakeholders, including the general public and media.
For working out the instant QTA, DISCOs adopted different approaches regarding transmission and distribution (T&D) losses. Some calculated QTA based on T&D losses for CY 2026, while others used losses applicable to FY 2025-26. NEPRA clarified that since T&D losses are approved on a financial year basis, the QTA has been determined using loss targets for FY 2025-26, as the relevant quarter falls within that period.
Accordingly, for the first and second quarters of CY 2026, T&D loss targets of FY 2025-26 will apply, while for the third and fourth quarters, targets for FY 2026-27 will be used.
During the hearing, a commentator, Amir Sheikh, suggested that the negative QTA be implemented during May–July to offset the impact of upcoming positive FCAs. He also questioned the positive capacity charges adjustment claimed by LESCO and HAZECO despite higher sales.
Responding to the query, the Power Planning and Monitoring Company (PPMC) explained that capacity charges adjustment depends on maximum demand and total energy purchases. It noted that higher allocation of capacity charges due to increased demand, coupled with relatively lower energy purchases compared to reference levels, resulted in positive adjustments for the two DISCOs.
However, overall capacity charges adjustment remains negative, benefiting consumers.
Another participant Rehan Javed, appreciated recent power sector measures that increased electricity demand from the national grid, contributing to the negative QTA.
He also commended the operation of efficient gas-based power plants instead of RLNG, which could result in relief in upcoming FCAs.
Copyright Business Recorder, 2026
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