Nepra approves electricity tariff hike; consumers to see March bill shock

Power Distributioni

Islamabad, March 5, 2026 – The National Electric Power Regulatory Authority (Nepra) on Wednesday approved a uniform increase of Rs1.6274 per unit in electricity tariffs under the monthly fuel cost adjustment (FCA), citing higher fuel costs for January 2026. The increase will impact most consumers, except lifeline users, pre-paid customers, and electric vehicle charging stations.

Who Will Be Affected

The tariff adjustment applies to all consumer categories of K-Electric and ex-Wapda distribution companies (Discos), with billing reflecting January 2026 fuel cost variations in the March bills. Pre-paid electricity consumers who opted for pre-paid tariffs and EVCS users are exempt.

Nepra clarified that the adjustment will appear separately on consumers’ bills, based on the units consumed in January.

Details of the Tariff Adjustment

According to the regulator:

• Actual National Average Fuel Cost for Jan 2026: Rs12.0227/kWh

• Reference Fuel Charge Component: Rs10.3954/kWh

• Resulting Increase: Rs1.6274/kWh

This hike comes a day after Nepra approved an additional Rs0.35 per unit increase for three months, allowing power companies to recover Rs8.67 billion from consumers under quarterly adjustments for the second quarter of FY25-26.

The earlier adjustment accounted for variations in:

• Capacity charges

• Variable operations and maintenance (O&M) costs

• Use of system charges and market operator fees

• Transmission and distribution losses

• Recovery of prior-period payables on incremental units (Oct–Dec 2025)

Ex-Wapda Discos had requested approval to recover Rs10.83 billion for the quarter.

What Consumers Can Expect

The combined FCA and quarterly adjustments mean that March electricity bills will reflect a significant increase for most households and businesses. Consumers are advised to review their bills carefully and manage energy usage to mitigate higher costs.

Nepra’s moves highlight ongoing pressures on Pakistan’s energy sector due to fluctuating fuel costs, transmission losses, and operational charges, making timely tariff adjustments a crucial tool for financial stability of power distribution companies.

Key Takeaways

• March 2026 bills to include Rs1.6274/unit fuel adjustment

• Additional Rs0.35/unit recovery from prior quarterly adjustments

• Lifeline, pre-paid, and EV charging consumers exempt

• Ex-Wapda Discos and K-Electric to implement changes in billing

Consumers are encouraged to track Nepra notifications to stay informed about tariff changes and fuel cost adjustments.