Govt challenges Rs1.79 per unit electricity tariff hike

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 Rs1.79 per unit with effect from January 1, 2026. In its petition, the government has also urged NEPRA to implement a single tariff structure for both government-owned distribution companies (DISCOs) and K-Electric, seeking uniformity in electricity pricing across the country. Recently, NEPRA fixed the national average base tariff at Rs33.38 per unit, up from the current rate of Rs31.59 per unit, reflecting an increase of Rs1.79 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 the power distribution companies. According to official sources, the Power Division has formally approached NEPRA to implement a uniform tariff framework applicable to both state-run DISCOs and K-Electric. NEPRA is scheduled to hear the government’s review petition on January 12, after which any potential changes in 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 Rs33.38 per unit is 62 paisa lower than the previously notified tariff of Rs34 per unit for the fiscal year 2025–26. According to NEPRA’s determination, the total financial requirement of DISCOs for 2026 has been estimated at Rs3,379 billion, of which Rs2,923 billion is allocated for electricity purchases, while Rs456.15 billion will cover operational costs and profits of the distribution companies. NEPRA further projected annual electricity sales for 2026 to reach 101 billion units.

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