Islamabad: The National Electric Power Regulatory Authority has issued a decision to increase the average base electricity tariff across the country from January 1, proposing a hike of Rs1.79 per unit.
According to a private TV channel, NEPRA formulated the decision on the request of power distribution companies and has forwarded it to the federal government for formal approval. The new tariff will come into effect only after the federal government grants its approval.
NEPRA stated that from January 2026, the average national base electricity tariff has been set at Rs33.38 per unit, compared to the currently applicable average base tariff of Rs31.59 per unit. This reflects an increase of Rs1.79 per unit, which may add further financial pressure on electricity consumers through higher monthly bills.
The authority clarified that the average base tariff for the fiscal year 2025-26 has been kept 62 paisas lower than the earlier estimated rate of Rs34 per unit. However, the increase was deemed unavoidable due to a significant rise in the overall financial requirements of the power sector.
According to NEPRA, the total financial requirement of distribution companies for 2026 has been estimated at Rs3,379 billion, with the largest share being the cost of electricity procurement, amounting to Rs2,923 billion. An additional Rs456.15 billion has been included to cover operational expenses and profits of the distribution companies.
NEPRA added that these costs were incorporated into the tariff to maintain the power transmission and distribution system, meet operational expenses, and ensure the financial sustainability of power companies. The authority also stated that annual electricity sales for 2026 are estimated at 101 billion units, based on which separate tariffs have been determined for each distribution company.
NEPRA further confirmed that a request for the implementation of a uniform tariff has also been sent to the federal government, and a final decision will be made after approval.
