Nepra's electricity tariff increase takes effect with the November 2026 billing month. The National Electric Power Regulatory Authority (Nepra), the country's power regulator, has provisionally raised the rate for extra electricity use under the Incremental Consumption Package (ICP) from Rs22.98 to Rs25.30 per unit. The change covers industrial and agricultural consumers of the ex-WAPDA distribution companies and K-Electric. The decision was issued on November 6, 2026, and lets the package continue at the new rate while a fuller cost review is carried out. The ICP charges a special rate on electricity used above a consumer's reference level, and it is meant to encourage productive use and keep industry on the grid.
What Nepra decided and what changes on bills
The regulator said the Rs25.30 rate applies from the November 2026 billing month and stays in place until a further decision after the comprehensive review. It rejected a Power Division proposal to apply the rate from October 2026, because October billing had largely been completed. Bills already issued for November before the decision is notified will be adjusted in later months.
The decision was not unanimous. Members Amina Ahmed and Engineer Maqsood Anwar Khan dissented and wanted the package suspended. Chairman Waseem Mukhtar used his casting vote to keep it running and give the Ministry another chance to supply the data it had repeatedly failed to provide. Member (Law) Ghulamullah Shaikh also backed continuation.
Separately, Nepra approved a positive fuel charges adjustment (FCA) of Rs2.3673 per unit for September 2026, which will appear on November bills. The FCA is the monthly adjustment that passes changes in fuel costs on to consumers. The power company CPPA-G had sought Rs2.5624 per unit, but the regulator lowered it after reviewing fuel costs and transmission losses. The adjustment applies to ICP consumption too, but not to lifeline consumers, electric vehicle charging stations or prepaid consumers who opted for prepaid tariffs.
Dispute over the marginal cost figures
The central question is marginal cost, meaning the cost of supplying the extra electricity that package users take. The package was designed so that participants pay at least that amount, so other consumers do not carry the burden. Nepra's tariff team estimated the marginal cost at about Rs31.83 per unit. After operational tags from the Independent System and Market Operator (ISMO) were included, the estimate fell to Rs29.65 per unit, but Nepra said this was not a final determination.
The two dissenting members said the Rs25.30 rate had no credible link to actual marginal cost, because it rested on an assumed generation mix and updated fuel prices. Nepra acknowledged that its monthly estimates reached Rs42.01 per unit in April and Rs49.65 per unit in May 2026, and that the gap between actual cost and the package rate had been paid by all consumers through the FCA. Industrial representatives, including Rehan Javed, Aamir Sheikh and Arif Bilwani, said they had not been consulted at all, and Aamir Sheikh argued that the package rules had been broken.
Nepra's own assessment faulted the Ministry. It had asked for a comprehensive review in a June 16, 2026 letter, but the July 29 submission contained raw data without the required cost analysis. On September 9, the Ministry asked the regulator to carry out the review itself. The regulator has now directed the Power Division to submit available data and analysis by November 25, 2026, with the remaining information for November 16 to 30 due by December 3. Under the original decision, the package can be terminated if an upward adjustment is needed in two consecutive reviews. Until that review is done, the Nepra electricity tariff increase remains provisional.
Timeline: what has happened so far
- December 9, 2025: Nepra approved the original package at Rs22.98 per unit, and it was notified on December 10, 2025.
- June 16, 2026: Nepra wrote to the Power Division asking for a comprehensive review of marginal cost.
- July 29, 2026: The Ministry furnished raw data that did not include the required cost assessment.
- September 9, 2026: The Ministry asked Nepra to conduct the review and hold the hearing itself.
- October 5, 2026: Nepra held a public hearing attended by Power Division officials and PPMC representatives.
- November 6, 2026: Nepra issued its decision keeping the package at Rs25.30 per unit from November 2026 billing.
Aasan alfaaz mein
Nepra ne industrial aur zarai (agricultural) consumers ke extra bijli use par rate Rs22.98 se barha kar Rs25.30 per unit kar diya hai, jo November 2026 ke bills se lagu hoga. Do members ne is faisle se ikhtilaf kiya aur kaha ke Power Division ne zaroori cost ka data nahi diya. Aam gharon ke bills mein September ka FCA, Rs2.3673 per unit, bhi November mein shamil hoga. Asal cost abhi tay nahi hui, is liye agle review ke baad faisla hoga.
