NEPRA determines base tariff after subsidy adjustments

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) determined the base tariff, which has been duly notified by the Federal Government after incorporating subsidies.

Tariff projections are based on multiple variables, including fuel prices, exchange rates, demand patterns, and generation mix. While prudent assumptions and best available estimates are used to minimize variations, these factors remain inherently uncertain and largely beyond the control of the regulator, DISCOs, and the Government.

In particular, fluctuations in international fuel prices and fuel supply disruptions continue to significantly impact power generation costs, a challenge being faced globally.

Contrary to concerns regarding tariff increases through adjustments, the actual figures indicate a net relief to consumers. During FY 2025–26 (Jul–Feb), a cumulative relief of Rs. 13.28 billion and Rs. 33.29 billion has been passed on to consumers through Fuel Charges Adjustment (FCA) and Quarterly Tariff Adjustment (QTA), respectively.

While the FCA for January and February 2026 shows an increase of Rs. 21.18 billion primarily due to higher demand and the forced outage of K-3, the QTA for the same period (January and February) reflects a negative adjustment of Rs. 48 billion. This results in a net relief of Rs. 26.85 billion for consumers for this period.

Overall, total relief during FY 2025–26 (Jul–Feb) amounts to Rs. 46.56 billion, translating into a reduction of Rs. 0.71/kWh in consumer-end tariffs.

Furthermore, industrial tariffs (pre-tax) have declined significantly from Rs. 49.19/unit (18 cents) in March 2024 to Rs. 34.75/unit (12 cents) in March 2026, reflecting a substantial reduction of Rs. 14.44/unit.

The Government remains fully cognizant of ongoing international fuel price volatility and supply constraints. In coordination with relevant stakeholders, efforts are underway to mitigate these impacts and protect consumers from undue financial burden going forward.