The National Electric Power Regulatory Authority has approved higher fuel costs and tariff adjustments that will place an additional burden of about Rs. 23 billion on electricity consumers in the coming months.
According to a late-night notification issued by the regulator, electricity tariffs will increase by Rs. 1.98 per unit in March. The increase includes Rs. 1.63 per unit under the fuel cost adjustment (FCA) for January 2026 and about Rs. 0.35 per unit under the quarterly tariff adjustment (QTA), which will be recovered over the next three months.
Officials estimate that the FCA alone will generate around Rs. 14 billion in March, while nearly Rs. 8.7 billion will be collected through the quarterly adjustment spread across the three-month period.
Nepra said the Rs. 1.6274 per kWh FCA will apply to all consumer categories of K-Electric and power distribution companies previously operating under Water and Power Development Authority, except lifeline consumers, electric vehicle charging stations, and prepaid electricity users who have opted for prepaid tariffs.
The regulator also stated that the higher FCA will apply to consumers benefiting from incremental consumption packages. Distribution companies and K-Electric have been instructed to reflect the fuel charges adjustment for January 2026 in electricity bills issued in March.
Nepra noted that additional electricity supply from the national grid to K-Electric helped limit the overall tariff increase. Without this support, tariffs could have increased by Rs. 1.50 per unit under FCA and Rs. 2.38 per unit under quarterly capacity purchase price, resulting in a total hike of Rs. 3.88 per unit.
The authority also highlighted that electricity consumption exceeding 1,100 GWh under the incremental package required dispatch from marginal generation plants, which contributed to the higher FCA. However, Nepra said higher electricity sales could improve capacity cost recovery and potentially result in favorable tariff adjustments later in the quarter.
