Beyond The Time News

Electricity Consumers to Get Rs1.75 Per Unit Relief

ISLAMABAD: Electricity consumers across Pakistan are set to receive relief of around Rs1.75 per unit for the next three months, from June to August, due to savings in power sector costs, according to Beyond Time News.

The expected relief comes mainly from reduced capacity payments to power producers during the first quarter of 2026.

Rs64 Billion Savings Behind Relief

Authorities have identified total savings of approximately Rs63.94 billion, which will be passed on to consumers through the quarterly tariff adjustment system.

These savings largely come from lower capacity charges, improved system efficiency, and adjustments in operational costs during January to March 2026.

Nepra Hearing Scheduled

The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on May 19 after distribution companies (Discos) requested a refund for consumers under the quarterly tariff adjustment mechanism.

If approved, the refund will result in a negative adjustment of Rs1.75 per unit for three months.

From Positive to Negative Adjustment

Currently, consumers are paying about 42 paisa per unit due to previous cost increases. However, this charge is set to end next month.

It will then be replaced by a negative adjustment, which will reduce electricity bills. Overall relief may reach around Rs2.15 per unit, although fuel price changes could slightly reduce the benefit.

Where the Savings Come From

The major contributors to the savings include:

  • Lower capacity charges: around Rs37 billion
  • Reduced service and operator fees: Rs11.24 billion
  • Impact of government consumption package: Rs23.5 billion

These savings were partly offset by higher operational and maintenance costs as well as system losses.

Contributions from Power Companies

All 11 distribution companies have requested refunds for consumers.

Some of the largest savings include:

  • Faisalabad Electric Supply Company: Rs10.45 billion
  • Hyderabad Electric Supply Company: Rs10.14 billion
  • Peshawar Electric Supply Company: Rs8.63 billion
  • Lahore Electric Supply Company: Rs7.9 billion

Other companies, including Islamabad, Multan, Gujranwala, and regional suppliers, have also reported significant refunds.

Read more:QESCO Warns Defaulters of Electricity Disconnections Over Rs47 Billion Dues

Impact on Future Bills

Once approved, the adjustment will apply to all distribution companies as well as K-Electric.

However, officials clarified that certain consumer categories under special government tariff packages will not be affected by these adjustments.

How the System Works

Electricity prices in Pakistan are adjusted through a mix of monthly fuel cost changes and quarterly reviews.

While fuel costs are passed on monthly, broader changes like capacity charges and system losses are adjusted quarterly to stabilize overall pricing.

Conclusion

The upcoming tariff adjustment is expected to bring noticeable relief to electricity consumers during the summer months. Officials say the move reflects improved efficiency in the power sector and reduced generation costs.

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