No Increase In Electricity Rates in 2026
The National Electricity Power Regulatory Authority has approved the government motion to keep the consumer end tariff unchanged for ongoing calendar year 2026.
NEPRA has approved the Federal Government motion seeking the regulator nod for the consumers end tariff for Discos and KE for the Calendar Year 2026.
In its decision released here, NEPRA said Power Division stated, that over the years, determined unit sales have gone down from 113 bkWh in FY 2023 to projected 101 bkWh in CY 2026, primarily due to influx of solar net metering and off-grid solar. The capacity of net metering and off-grid solar has, increased to 6,539 MW and 12,629 MW respectively, which has an impact of around Rs.3.5/kWh on grid rates.
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The MoE (PD) further stated that total revenue requirement of X\TDISCOs for the CY 2026, as determined by NEPRA, has decreased by Rs. 142 billion, as compared to FY 2025-26, resulting in reduction of Rs.0.62/kWh in the average base tariff for the CY 2026. While explaining the reasons, the Power Division highlighted that major reason for reduction in average rate is decrease in the Power Purchase Price (PPP) for the CY 2026, as compared to FY 2025-26.
The Power Division explained that although average tariff has been reduced by Rs.0.62/kWh, however, the reduction in tariff has been eaten up by change in sales mix, as the quantum of subsidized consumers has increased exponentially from 9.5 million consumers in FY 2022 to 20.71 million consumers, as of June 2025. With this shift, the consumption for such subsidized consumers has also increased from 8,527 MKWhs in FY 2020-21 to 19,711 MKWhs as of June 2025.
It was further submitted that despite this change in sales mix, the Federal Government has decided to maintain the existing applicable tariff for each category of consumers, and out of total determined revenue requirement of Rs.3,379 billion, an amount of Rs.248 billion, would be picked up by the Federal Government as subsidy.
The Authority has determined uniform tariff as required under section 31(4) of the Act. The Uniform Tariff so determined by the Authority includes impact of PYA of Rs.71.572 billion, to be passed on in a period of twelve months from the date of notification of the instant decision.
The proposed electricity base rates for various categories of domestic consumers will remain from Rs3.95 per unit to Rs47.69 per unit for the ongoing fiscal year. For the domestic consumers using electricity above 700 units per month, the rate will be Rs47.69 per unit. Similarly, the tariff for the protected domestic consumers using 1-100 units per month will be Rs10.54 per unit, while for protected domestic consumers using 101-200 units per month, tariff will be Rs13.01 per unit.
For the non-protected domestic consumers using 1-100 units, the tariff will be Rs22.44 per unit and for the consumer using 101-200 units per month it will be Rs28.91 per unit. The tariff for 201-300 units per month will Rs33.10 per unit, while for 301-400 units per month it will be Rs39.05 per unit to Rs37.99 per unit.
The tariff for 401-500 units per month will stay at existing Rs40.22 per unit. The tariff for 501 to 600 units per month will be Rs41.62 per unit and tariff for 601 to 700 units per month will stay at Rs42.76 per unit. The tariff for more than 700 units per month will be Rs47.69 per unit.
For the life-line domestic consumers using 1 to 50 units per month and 51 to 100 units per month, the tariff will remain unchanged at Rs3.95 per unit and Rs7.74 per unit respectively. For commercial consumers, the tariff will be Rs45.43 per unit, for general services Rs43.17 per unit, agriculture Rs30.75, while for the industrial consumers the tariff will be Rs33.48 per unit. The Authority also approved the federal government request for applying the new consumer end tariff from January 01, 2026.