Power consumers to get Rs1.75 per unit relief over next 3 months

ISLAMABAD: Electricity consumers across the country are expected to receive an unusual relief of Rs1.75 per unit over the next three months (June to August), due to Rs64 billion in savings mainly on account of lower capacity charges paid to power producers during the first quarter (January–March 2026) of the current year, it emerged on Wednesday. Under the annual tariff rebasing mechanism, the government revised tariff-setting to a calendar-year basis, with effect from January 1, 2026, from the historic practice of fiscal-year adjustments. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on May 19 at the request of former Wapda distribution companies (Discos), which have sought a Rs63.94 billion refund to consumers under the quarterly tariff adjustment (QTA) mechanism. The refund is estimated to result in a negative QTA of about Rs1.75 per unit for three billing months. Consumers are currently paying about 42 paisa per unit in positive QTA on account of higher costs of Rs10.8 billion for the fourth quarter (October–December 2025), which expires by the end of next month. This will be replaced by a negative QTA for the following three months, resulting in a net reduction of about Rs2.15 per unit. This impact may be partially diluted by higher monthly fuel cost adjustments due to expensive fuel imports. It may be noted that consumers are currently paying about 42 paisa per unit positive QTA on account of higher costs (Rs10.8bn) for the fourth quarter (Oct-Dec 2025) that expires by the end of next month. That would be replaced by a negative QTA for the following three months, resulting in a net reduction of about Rs2.15 per unit. This may be diluted partially in the case of higher monthly fuel cost adjustments because of expensive fuel imports. The Discos sought adjustments on account of capacity charges, transmission charges and market operator fee; the impact of the incremental consumption package announced by the government for ind