ISLAMABAD: With a damning additional note on the cost of institutional inefficiencies, theft and mismanagement, the National Electric Power Regulatory Authority (Nepra) on Tuesday approved 33 paise per unit increase in the national uniform tariff for three months (December-February) and allowed Power Division to implement discounted incremental rates to industrial and agricultural consumers at Rs23 per unit – against Rs34 base rate.

In a determination, Nepra said the 33 paise per unit higher charges would be applied to all consumers across the country, including K-Electric, under the quarterly tariff adjustment (QTA) for 1QFY26. The authority has allowed the positive quarterly adjustments of Rs6.067 billion to be applicable to all consumer categories, except lifeline consumers and prepaid consumers, in three months starting December, it said.

In a separate determination, the regulator also allowed the Power Division to notify its incremental consumption package for industrial and agricultural electricity consumers of ex-Wapda Distribu­tion Companies (Discos) and K-Electric.

Under the package, the reduced rate of Rs22.98 per unit — the marginal cost of power supply — would be applicable to industrial and private agricultural consumers, including both Time-of-Use and Non-ToU categories on their peak and off-peak incremental consumption over the corresponding reference period.

A Power Division spokesperson welcomed the decision and added that under the new tariff structure, the price of additional units for agriculture and industry had been reduced to Rs22.98 per unit from their existing rates of Rs38 and Rs34 per unit, respectively.

The package will remain applicable for three years on a monthly basis and the reference months for determining incremental consumption shall be from December 2023 to November 2024. The incremental package is subsidy-neutral for both but will be subject to positive Fuel Cost-Adjustments (FCAs). Further, Quarterly Tariff Adjustments (QTAs), Debt Service Surcharge (DSS) and negative FCAs shall not be applicable on incremental consumption for eligible consumers.

Nepra also released an additional note of its member, technical Rafique A Shaikh, exposing the deep-rooted inefficiencies, theft and mismanagement of power plants, including inadequate utilisation of cheaper plants and greater capacity payments.

Mr Shaikh, who completed his two terms at the regulator, in his departing note said such unnecessary costs arising from inefficiencies should not be passed on to consumers. “Transferring such costs to consumers may lead to an industrial slowdown, reduced GDP growth, increased unemployment, pressure on the current account deficit, weakened socio-economic activities, and an overall deterioration in the quality of life across the country”, he said and demanded that the concerned companies and organisations should bear these inefficiencies themselves.

He pointed out that QTAs primarily reflected variations in the Power Purchase Price (PPP), including the impact of T&D losses. The data clearly showed lower plant factors for thermal power plants operating under ‘Take-or-Pay’ capacity contracts.

Published in Dawn, December 10th, 2025