The power regulator will assess whether the existing incremental consumption tariff should be increased to reflect the actual marginal cost of electricity.
ISLAMABAD, September 29, 2026: The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on October 5, 2026, to review the Incremental Consumption Package (ICP), including whether its existing tariff of Rs22.98 per kilowatt-hour (kWh) should be increased to reflect the actual marginal cost of electricity.
The hearing is scheduled for 2:30pm at NEPRA Tower in Islamabad, with stakeholders also being given the option to participate online.
Incremental Consumption Package under review
NEPRA approved the Incremental Consumption Package through a decision dated December 9, 2025, which was notified the following day.
The package provides for semi-annual reviews to determine whether its costs and revenues remain appropriately aligned. Under the approved mechanism, the marginal tariff can be adjusted where necessary.
The regulator’s decision also stipulates that the scheme will be terminated immediately if an upward tariff adjustment becomes necessary in two consecutive reviews.
Power Division submits data to NEPRA
The Ministry of Energy’s Power Division has submitted information to NEPRA for the semi-annual assessment of the package.
The data includes plant-wise hourly electricity generation, monthly consumption, electricity consumption benefiting from the package and hourly system marginal costs.
NEPRA said the information would be considered during the public hearing, along with concerns and submissions from relevant stakeholders.
Key issues before the regulator
NEPRA has identified several matters for consideration during the October 5 hearing.
The primary question is whether the existing Rs22.98/kWh package rate should be revised upwards to bring it in line with the actual marginal cost of electricity.
The regulator will also consider the appropriate effective date if an increase is approved. The options include the June 2026 billing month, October 2026, or another period determined by NEPRA.
Another issue is whether implementation of the package should be temporarily suspended in view of prevailing fuel prices.
NEPRA has also left room for consideration of any additional matters that may arise during or after the hearing.
Stakeholders invited to submit objections
NEPRA has invited all interested and affected parties to present their written or oral objections, subject to applicable laws and regulations, during the public hearing.
Relevant legislation, rules, regulations, codes, NEPRA determinations and information submitted by the Ministry of Energy are available through the regulator’s website.
The hearing will be held at NEPRA Tower, Attaturk Avenue (East), Islamabad. Stakeholders opting for online participation will be able to join through the Zoom meeting details provided in the hearing notice.
Decision could affect incremental electricity tariff
The proceedings will determine whether the current Incremental Consumption Package remains financially aligned with electricity system costs or requires changes to its tariff or implementation.
The review comes as NEPRA assesses the relationship between the package’s existing tariff, electricity system marginal costs and prevailing market conditions.