Govt wants to alter KE consumer-end tariff as per Nepra fixation

ISLAMABAD: The federal government has moved to alter K-Electric’s consumer-end tariff in line with the National Electric Power Regulatory Authority’s determination to maintain a uniform electricity tariff across the country, invoking its policy powers under the NEPRA Act.

On January 7, 2026, NEPRA reduced the National Average Tariff (NAT) by Rs0.62 per unit for calendar year 2026 through rebasing, fixing it at Rs33.38 per kWh, compared to Rs34.00 per kWh previously determined for FY 2025-26.

Earlier, K-Electric’s average tariff had already been slashed by Rs7.6 per unit, bringing it down from Rs39.97 per kWh to Rs32.37 per kWh, a move that significantly weakened the utility’s revenue projections.

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Following NEPRA’s determination, the federal government reviewed the tariff schedules recommended for all ex-WAPDA DISCOs (XWDISCOs) for various consumer categories and decided to enforce a uniform tariff nationwide, in line with Section 31(4) of the NEPRA Act and public policy considerations.

Accordingly, a uniform tariff proposal, reflecting the government’s economic and social policy and based on the consolidated revenue requirement approved for federally owned DISCOs, was submitted to the federal cabinet on January 8, 2026 for approval. In anticipation of cabinet clearance, the proposal has also been submitted to NEPRA under Section 31 of the Act, along with details of targeted tariff differential subsidies (TDS).

Officials clarified that inter-DISCO tariff rationalisation is not intended to generate additional revenue for the federal government, as it remains within the revenue requirements determined by NEPRA under Section 31(4). Instead, the exercise aims to meet constitutional and policy objectives, including affordability and equity among electricity consumers.

Once approved, the move will lead to the determination of a “uniform final tariff” under Section 31(7) of the Act, to be notified by the federal government with effect from January 1, 2026, modifying existing rates notified through SROs 1157 to 1167(I)/2025 dated July 1, 2025, read with earlier applicable notifications.

In line with government policy, a uniform consumer-end tariff will also be maintained for K-Electric and DISCO consumers—even after privatisation—through direct or indirect subsidies, if required.

Accordingly, the government’s applicable tariff for K-Electric consumers has been aligned with the proposed uniform national tariff for DISCOs. The proposal has been submitted to the federal government for approval and, in anticipation thereof, to NEPRA for consideration under the relevant provisions of the Act.

To this end, the federal government has filed a formal motion before NEPRA seeking reconsideration of consumer-end tariff recommendations for DISCOs under Sections 7 and 31 of the Act, read with Rule 17 of the NEPRA Rules, to incorporate targeted subsidies and inter-DISCO tariff rationalisation. A similar motion has also been filed with respect to consumer-end tariffs for K-Electric, seeking to maintain a uniform tariff across Pakistan.

Nepra has scheduled a public hearing on January 12, 2026, to consider the federal government’s motion before taking a final decision.

Copyright Business Recorder, 2026