NEPRA Cuts Power Tariff by 62 Paise for 2026: New Rates Explained

The National Electric Power Regulatory Authority (NEPRA) has officially reduced the national average uniform electricity tariff. Consumers will see a cut of 62 paise per unit. This reduction applies for the next six months and is effective from January 1.

The regulator issued a notification late Wednesday night regarding the changes. NEPRA determined separate consumer-end tariffs for each distribution company (ex-Wapda DISCOs). This decision reflects their differing revenue requirements and permitted levels of transmission and distribution (T&D) losses.

New Rates by NEPRA & Projections

For the Calendar Year 2026 (CY26), NEPRA set the national average tariff at Rs. 33.38 per kWh. This is a decrease from the Rs. 34.00 per kWh rate observed in 2025-26.

NEPRA followed specific policy guidelines from the Ministry of Energy (Power Division). The federal cabinet also approved the annual rebasing of consumer-end tariffs starting January 1. Consequently, NEPRA rebased the tariffs and issued its determination for January through December 2026.

The regulator has communicated these determined tariffs to the federal government. The government will now submit the uniform tariff application.

Financial Breakdown

The total revenue requirement for ex-Wapda Discos is projected at Rs. 3.379 trillion. This massive figure breaks down into two main components:

• Rs. 2.923 trillion for power purchase costs.
• Rs. 456.15 billion for distribution companies’ margins and prior-year adjustments.

These financial projections rely on estimated sales of 101,234 gigawatt-hours (GWh) during CY26.

Distribution Companies Update

Several electric power companies filed multi-year tariff petitions for the period spanning 2025-26 to 2029-30. NEPRA has now determined the tariffs for the following regions:

• Gujranwala
• Quetta
• Multan
• Sukkur
• Hyderabad
• Peshawar
• Tribal Areas
• Hazara

This adjustment aims to align consumer costs with the actual operational realities of these distribution companies.