ISLAMABAD: In order to ensure uniform power tariff in the country, the National Electric Power Regulatory Authority (Nepra) has reduced the electricity rate by Rs1.15 per unit for all but lifeline consumers with the change also applicable to K-Electric consumers.

The development follows Nepra's hearing of the Power Division's motion seeking a uniform basic tariff, contending that tariff rationalisation is not aimed at raising any revenues for the federal government but in fact enables the fulfilment of parameters set forth in the Constitution as well as the policy.

In its decision, the regulator has maintained the tariff for lifeline consumers using 50 units at Rs3.95 per unit, whereas those using 100 units will continue to pay Rs7.74 per unit.

Protected consumers with 100 units on their bill will now pay at rate of Rs10.54 per unit, whereas an Rs13 per unit rate will apply to those consuming 200 units a month.

With regards to non-protected consumers, the electricity tariff has been slashed by Rs1.15 per unit for all categories — and the same reduction is applicable on commercial consumers as well, bringing their new average basic tariff to Rs45.43 per unit.

The Rs1.15 per unit reduction also applies to the general services whose existing rate now stands at Rs43.17 per unit.

For industries, the new electricity tariff is now fixed at Rs33.48 per unit after the Rs1.15 per unit reduction. Meanwhile, the new basic tariff for bulk electricity consumers has been set at Rs41.76 per unit.

Agricultural consumers on the other hand will also benefit from the reduction and will now pay at a rate of Rs30.75 per unit.

During the Nepra hearing a day earlier, the government had attributed the reduction to rupee stability, falling capacity payments, and declining global fuel prices — offering rare fiscal relief amid ongoing economic challenges.

Interestingly, the government's renegotiated deal with independent power producers (IPPs) would help shave Rs236 billion off capacity payments in FY26.

During the hearing Power Division officials estimated that national electricity consumption in FY2025-26 will hover around 103 billion units, slightly lower than the 106 billion units projected for the current fiscal year. The revenue requirement for FY26 has also been revised down to Rs3.521 trillion, from Rs3.768 trillion a year earlier, documents presented at the hearing show.

"The decline in power generation costs by Rs1.27 per unit and capacity charges by Rs1.34 per unit has created room for tariff reduction," a Power Division official told Nepra.

Despite the proposed tariff cut, capacity payments — fixed payments to power producers — will remain a heavy burden on consumers. The total capacity payments for FY26 are projected at Rs1.766 trillion, translating into Rs17.06 per unit.

On an annual basis, it is a Rs1.34 per unit cut in these charges. In the FY 2024-25 the total capacity payments were Rs1.952 trillion, the official added. When asked about the impact of terminating/hybrid Take & Pay agreement with the IPPs on the capacity payments, the official said that the total reduction in capacity payments will be Rs236 billion.