ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has reduced the national average electricity tariff by 62 paise per unit for the next six months, effective from January 1, 2026. The regulator’s notification, issued late Wednesday, sets the national average uniform tariff at Rs33.38 per kilowatt-hour, down from Rs34.00 per kWh in 2025-26.
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Nepra determined separate tariffs for each distribution company, taking into account their revenue requirements and permissible transmission and distribution (T&D) losses. The move aligns with federal policy guidelines and the cabinet’s approval of annual rebasing of consumer-end tariffs.
Several ex-Wapda distribution companies, including Gujranwala, Quetta, Multan, Sukkur, Hyderabad, Peshawar, Tribal Areas, and Hazara electric power companies, had submitted multi-year tariff petitions for 2025-26 to 2029-30. These petitions were evaluated by Nepra and finalized in the current determination for calendar year 2026.
The total revenue requirement of ex-Wapda distribution companies has been projected at Rs3.379 trillion. This includes Rs2.923 trillion for power purchase costs and Rs456.15 billion for distribution companies’ margins and adjustments from previous years, based on an estimated sale of 101,234 gigawatt-hours during CY26.
Officials said the revised tariffs will be communicated to the federal government for submission of the uniform tariff application. The rebasing ensures that tariff levels reflect actual costs while considering the financial sustainability of distribution companies.
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The reduction is expected to provide modest relief to electricity consumers while keeping the sector financially viable. Nepra’s move follows ongoing efforts to balance affordability for consumers with the operational and investment needs of the power sector.