Electricity Prices in Pakistan Likely to Increase by Rs1 Per Unit

Pakistan’s electricity prices are likely to increase by up to Rs1 per unit after power distribution companies (Discos) requested the National Electric Power Regulatory Authority (NEPRA) to approve a positive Quarterly Tariff Adjustment (QTA) for the April–June 2026 period.

Through the petition filed via the Central Power Purchasing Agency-Guaranteed (CPPA-G), the Discos are aiming to get over Rs23.031 billion from the electricity consumers. The approval of the tariff adjustment will also be relevant to the K-Electric consumers who are subjected to the federal government’s uniform tariff policy.

NEPRA to Hold Public Hearing on August 12

NEPRA has called for a public hearing and it will be held on August 12, 2026, to consider the petition and to approve or disapprove the requested increase in electricity tariff.

The request has been made under the Quarterly Tariff Adjustment mechanism on behalf of all the power distribution companies, excluding TESCO and QESCO.

Discos Seek Billions in Capacity Charges

The petitioners have sought Rs49.746 billion in capacity charges from the Discos. The overall amount has been decreased, however, by negative adjustments of Rs13.517 billion including:

• Variable operation and maintenance (O&M) charges
• System usage charges
• Market operator fees
• Transmission and distribution loss adjustments under the monthly Fuel Charges Adjustment (FCA)

Capacity Charge Requests by Distribution Companies

The proposed capacity charge adjustments include:

• FESCO: Rs9.573 billion
• GEPCO: Rs7.587 billion
• HESCO: Negative Rs599 million
• IESCO: Rs6.867 billion
• LESCO: Rs10.484 billion
• MEPCO: Rs9.244 billion
• PESCO: Rs7.762 billion
• QESCO: Negative Rs3.008 billion
• SEPCO: Rs3.860 billion
• TESCO: Negative Rs3.790 billion
• HAZECO: Rs1.766 billion

Net Quarterly Tariff Adjustment of Rs23.031 Billion

Data submitted to NEPRA shows that the overall net impact of the Quarterly Tariff Adjustment is Rs23.031 billion.

The positive adjustment requests include:

• IESCO: Rs4.872 billion
• LESCO: Rs2.353 billion
• GEPCO: Rs4.992 billion
• FESCO: Rs5.358 billion
• MEPCO: Rs5.070 billion
• PESCO: Rs6.294 billion
• SEPCO: Rs2.960 billion
• HAZECO: Rs1.239 billion

Meanwhile, the following companies have sought negative adjustments:

• HESCO: Rs2.083 billion
• QESCO: Rs3.647 billion
• TESCO: Rs4.377 billion

The negative adjustment comprises variable O&M expenses of Rs4.955 billion, Rs13.517 billion in system usage charges and market operator fees, and Rs3.20 billion for transmission and distribution losses.

K-Electric Consumers Also Affected

For instance, any QTA that the federal government has approved for the Discos will also apply to K-Electric consumers, meaning that K-Electric consumers could have to pay higher electricity bills too as a result of the federal government’s uniform quarterly tariff adjustment policy.

With the approval of the proposal after the hearing on August 12, consumers of electricity may be seeing an added expense of approximately Rs 1 per unit in their bills in the near future.