Nepra reduces electricity charges for three months

The unusual relief over the three months — June to August — has resulted owing to the combined effect of two concurrent tariff adjustments — one for the monthly fuel cost for April and another for quarterly tariff adjustments for the first quarter (January-March 2026). In its first determination relating to the monthly fuel cost adjustment for the consumption month of April, Nepra worked out and notified Rs1.19 per unit increase in fuel costs to be recovered from consumers in the current month’s (June) billing, with an additional fiscal gain to distribution companies (Discos) of Rs11bn. Nepra “has decided that positive FCA for April 2026 i.e (Rs1.1907/kWh)…shall be applicable to all the consumer categories of KE and XWDISCOs except lifeline consumers, Electric Vehicle Charging Stations (EVCS) and pre-paid electricity consumers of all categories who opted for pre-paid tariff”, the notification read. It adds that positive FCA shall also apply to consumption falling under the incremental consumption package, and Discos and KE shall reflect the FCA in respect of April in the billing month of June. The Discos had demanded Rs1.74 per additional fuel cost to mop up Rs16bn more funds from consumers but the regulator scaled it down. Simultaneously, in its second determination under quarterly tariff adjustment (QTA) for the January-March period, Nepra notified Rs1.99 per unit reduction in rates with a total financial impact of Rs67bn over three months — June, July and August. The adjustments will be applicable to all consumer categories, except lifeline consumers, units billed for increm