The National Electric Power Regulatory Authority (NEPRA) has increased the special electricity rate for additional consumption by industrial and agricultural consumers to Rs. 25.30 per unit from Rs. 22.98, marking an increase of Rs. 2.32 per unit under the Incremental Consumption Package (ICP).
The revised rate will apply to industrial and agricultural consumers served by K-Electric and other power distribution companies from the November 2026 billing cycle. NEPRA approved the decision through a statutory regulatory order despite opposition from two of its four members.
NEPRA members Amina Ahmed and Maqsood Anwar Khan opposed the increase, arguing that the revised rate lacked supporting cost calculations. They maintained that the regulator’s assessment placed the actual marginal cost of additional electricity at Rs. 31.83 per unit and called for suspending the package until verified data became available.
NEPRA Chairman Waseem Mukhtar used his casting vote to approve the revised rate after the authority remained divided 2-2. He acknowledged the concerns raised by dissenting members but decided to give the Ministry of Energy another opportunity to submit the required cost calculations.
Industrial consumers have also raised concerns that pricing additional electricity below its actual cost could increase fuel cost adjustments (FCA), shifting the financial burden onto other electricity consumers.
Introduced in December last year, the Incremental Consumption Package aims to encourage industrial and agricultural users to consume more electricity by offering additional units at reduced rates. The regular industrial electricity tariff stood at Rs. 34.50 per unit last month.
NEPRA also criticized the Power Division and its subordinate entities for failing to provide revised cost calculations despite repeated requests over the past six months. The regulator has set deadlines for submitting the outstanding information and warned that failure to comply could lead to suspension or termination of the package, along with possible legal proceedings.
