Nepra cuts power rates by Rs1.99 per unit for next three months

The National Electric Power Regulatory Authority (NEPRA) has notified a net reduction in national power rates on Thursday, bringing relief to consumers over the next three months. The cumulative financial impact of the decision stands at Rs56 billion. The reductions will appear in electricity bills from June through August 2026.

The rate adjustment comes from the overlapping effects of two concurrent regulatory decisions. The first decision involves the monthly Fuel Cost Adjustment (FCA) for power consumed in April 2026. The second involves the Quarterly Tariff Adjustments (QTA) covering the first quarter of the calendar year, from January to March 2026.

For the April FCA, Nepra calculated an increase of Rs1.19 per unit. Power distribution companies (DISCOS) originally requested an additional fuel cost of Rs1.74 per unit to collect Rs16 billion.

The regulator scaled down the request, capping the additional recovery at Rs11 billion.

Nepra stated in its notification that the positive FCA for April 2026 “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
positive adjustment applies to the June billing cycle.

Concurrently, under the first-quarter QTA, Nepra approved a rate reduction of Rs1.99 per unit.

The combined application of both decisions results in a net rate reduction of 80 paisa per unit for the month of June.

This net figure reflects the Rs1.99 QTA decrease offset by the Rs1.19 FCA increase. The full Rs1.99 per unit QTA reduction will continue to apply independently during the billing months of July and August.

The lower quarterly tariff rates resulted from adjustments in capacity charges, transmission charges, and market operator fees.

The calculation also factored in the impact of transmission and distribution losses on monthly fuel costs, variable operations and maintenance charges for the first quarter, and the government’s three-year incremental consumption package for industrial and agricultural consumers.