Islamabad, February 17, 2026 — The National Electric Power Regulatory Authority (NEPRA) has issued a revised schedule of fixed charges for domestic electricity consumers, introducing monthly fees across different consumption slabs in a move aimed at recovering Rs101 billion and curbing cross-subsidies estimated at Rs4.04 per unit (kWh).
Under the updated framework, fixed monthly charges of up to Rs675 per kW have been imposed on various consumer categories, while lifeline and certain protected consumers have been granted partial exemptions.
Key Highlights of the New Fixed Charges
• Protected consumers using up to 100 units per month have been exempted from the Rs200 fixed charge.
• A Rs200 fixed charge has been applied to approximately 9.9 million consumers using less than 200 units.
• Rs300 fixed charge will apply to over 6.1 million protected consumers consuming up to 200 units.
• Non-protected consumers who exceed the 100-unit limit even once within six months will face a Rs275 per kW fixed charge, impacting around 5.7 million users. Their per-unit electricity tariff will rise above Rs22.44, excluding taxes.
Slab-wise Fixed Charges for Domestic Consumers
According to the notification issued by NEPRA:
• Up to 200 units: Rs300 per month — affecting 2.24 million consumers
• 201–300 units: Rs350 per month — 2.9 million consumers
• 301–400 units: Rs400 per month — 1 million consumers
• 401–500 units: Rs500 per month — 400,000 consumers
• Above 500 units: Rs675 per kW per month — highest slab
Rationale Behind the New Tariff Structure
NEPRA explained that the revision aims to address the structural imbalance in the current tariff system, where over 93% of electricity costs are recovered through per-unit charges, while only 7% comes from fixed charges.
In contrast, a significant portion of power sector expenses — including capacity payments to generation companies, NTDC and HVDC transmission costs — are fixed in nature and must be paid regardless of actual electricity consumption. This mismatch has increased financial pressure on distribution companies.
The situation has been further complicated by the rapid expansion of rooftop solar installations, which has reduced grid-based electricity demand and intensified revenue shortfalls.
Alignment with National Electricity Plan
The National Electricity Plan (NE Plan) recommends gradually increasing the share of fixed charges to account for at least 20% of total fixed system costs. The newly approved tariff adjustments reflect this strategic shift toward a more sustainable and equitable pricing structure.
Relief for Industrial Consumers
NEPRA noted that the additional revenue generated through revised fixed charges will help reduce cross-subsidies for industrial consumers, leading to a reduction of Rs1 to Rs4.58 per unit in their variable electricity tariffs across different categories.
For Time-of-Use (ToU) consumers and households using more than 300 units, the increase in fixed charges has been offset by a corresponding decrease in per-unit rates, minimizing the overall financial impact.
A Step Toward Grid Sustainability
According to NEPRA, the new tariff structure aims to ensure long-term financial sustainability of the national grid, promote equitable cost recovery, and adapt to evolving energy consumption patterns driven by renewable energy adoption.
The revised fixed charges will be reflected in monthly electricity bills nationwide following their official implementation.