ISLAMABAD: The National Regulatory Authority- NEPRA is studying a proposal for providing electricity relief to consumers totaling Rs63.94 billion as part of the quarterly tariff adjustment that NEPRA is scheduled to consider on May 19. The proposal for the tariff adjustment was made by the various distribution companies in Pakistan due to notable savings recorded on three important elements of the national electricity tariff formula for the first quarter of 2026. This will benefit all consumers of the various distribution companies in the country, including those served by K-Electric.
The electricity tariff reduction for consumers proposal is based on real price changes observed from January through March 2026 – changes that have led the DISCOs to call for an urgent downward adjustment of current consumer tariffs.
Reduction in Capacity Charges by Rs36.837 billion – the main factor behind customer benefit
The biggest component that will help in bringing about electricity relief for consumers will be the Rs36.837 billion worth reduction in capacity charges for the first quarter of fiscal year 2026. The concept of capacity charges refers to the fixed charges paid by Pakistan’s electricity system to electricity producers, for keeping generation capacity available.
Such a cut on this scale in one single quarter means a lot for improvement in the cost situation of power purchase arrangements in Pakistan – and the DISCOS have started requesting NEPRA to pass this improvement on to the customers directly.
Decline in system charges and market fees totals Rs11.24 billion
In addition to the reduction in capacity charges, DISCOs witnessed a total decrease of Rs11.24 billion in system usage charges and market fees in the first quarter. The system usage charges pertain to the expenses associated with transporting electricity through Pakistan’s national power grid, whereas market fees relate to the operational costs of Pakistan’s electricity market.
It bolsters the case that DISCOs made to NEPRA regarding electricity relief for consumers because both have been declining together in Q1 2026.
ALSO READ: NEPRA Solar License Now Mandatory in Pakistan as New Fees Announced
DISCOs seek Rs23.51 billion reduction in incremental units
Incremental Units is the third element in the electricity tariff relief plan, which consists of the quarter adjustment system. The quarter adjustment system evaluates the electricity sales volume compared to the consumption expectations contained in the present tariff schedule. The DISCOs have requested a decrease of Rs23.51 billion in the third element, because in Quarter 1 2026, there was actual savings, but the present tariff has not been able to convey this to the consumer.
NEPRA will examine all three elements during the hearing scheduled for May 19 before making its final decision regarding the amount of relief.
NEPRA’s decision on May 19 will finalize the exact relief amount for consumers
The figure of Rs. 63.94 billion worth of electricity relief for power consumers amounts to the official claim by DISCOs but not to the decision made by NEPRA in its entirety. NEPRA has full discretion to accept, revise or disapprove any portion of this adjustment following its hearing on May 19. For many Pakistani residents and businesses that are already suffering from higher electricity prices, May 19 holds out hope for real relief.
