Power Companies Seek Rs1.34 per Unit Hike in Electricity Tariff from December
NEPRA to hold hearing on November 17 on distribution companies' request for an additional Rs23.326 billion, which would raise electricity costs by up to Rs1.34 per unit from December 2026 to February 2027.
Pakistan's power distribution companies have requested an additional Rs23.326 billion in revenue through higher electricity tariffs, which could increase the cost of electricity by up to Rs1.34 per unit for consumers between December 2026 and February 2027. The request, covering the July-September 2026 billing period, would also apply to K-Electric customers under the federal government's uniform tariff policy.
According to applications submitted by the 11 former WAPDA distribution companies, capacity charges account for the largest portion of the requested adjustment at Rs38.917 billion, including the impact of net metering and net billing units. The companies have also sought Rs5.597 billion for variable operation and maintenance costs and Rs7.790 billion to cover the impact of transmission and distribution losses on monthly fuel cost adjustments. Another Rs272 million relates to use of system charges and the Central Power Purchasing Agency Guaranteed (CPPA-G) agency fee.
A negative adjustment of Rs29.252 billion arising from incremental electricity consumption offsets a substantial portion of the additional costs, bringing the combined net adjustment request to Rs23.326 billion. Among individual companies, Islamabad Electric Supply Company (IESCO) has requested the largest positive adjustment of Rs10.535 billion, followed by Faisalabad Electric Supply Company (FESCO) at Rs10.462 billion and Peshawar Electric Supply Company (PESCO) at Rs6.978 billion. Multan Electric Power Company (MEPCO) has sought Rs3.366 billion, Lahore Electric Supply Company (LESCO) Rs2.995 billion, Gujranwala Electric Power Company (GEPCO) Rs1.637 billion and Hazara Electric Supply Company (HAZECO) Rs521 million.
Several other companies have reported negative adjustments. Tribal Electric Supply Company (TESCO) has calculated a negative adjustment of Rs5.875 billion, followed by Quetta Electric Supply Company (QESCO) at Rs4.088 billion, Hyderabad Electric Supply Company (HESCO) at Rs2.154 billion and Sukkur Electric Power Company (SEPCO) at Rs1.051 billion.
The National Electric Power Regulatory Authority (NEPRA) will review the proposed charges at a public hearing scheduled for November 17 before deciding how much can be passed on to consumers. NEPRA noted that the September 2026 fuel charges adjustment had not been officially notified when the distribution companies submitted their applications, so they calculated the impact of transmission and distribution losses using the adjustment requested by CPPA-G. The regulator will examine these calculations and also consider extending the quarterly increase to K-Electric consumers in line with federal guidelines requiring uniform quarterly tariff adjustments.
The proposed Rs1.34 per unit increase is not final and remains subject to NEPRA's approval. The actual amount recovered from consumers will depend on the regulator's final determination after the hearing.
