ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has increased electricity rates for additional consumption by industrial and agricultural consumers.
The revised tariff has increased from Rs22.98 to Rs25.30 per unit, representing a rise of Rs2.32.
The increase applies under the Incremental Consumption Package (ICP), which encourages businesses and farmers to use additional electricity.
The new rate will apply to eligible consumers connected with K-Electric and other electricity distribution companies.
The revised tariff will take effect from the November 2026 billing cycle.
NEPRA Approves Revised Electricity Tariff
The electricity regulator formally announced the decision through a statutory regulatory order.
However, the revised tariff faced opposition from two members of the four-member authority.
The members were equally divided, with two supporting the decision and two opposing it.
Chairman Waseem Mukhtar used his casting vote to approve the new electricity rate.
The decision allows the Incremental Consumption Package to continue despite concerns about its financial impact.
The regulator also directed relevant government departments to provide updated electricity cost calculations.
Two Members Oppose Higher Electricity Rate
Authority members Amina Ahmed and Maqsood Anwar Khan opposed the revised tariff.
They argued that the Rs25.30 rate lacked sufficient supporting cost calculations.
According to their assessment, the actual marginal cost of additional electricity stands at Rs31.83 per unit.
This figure is considerably higher than the newly approved rate.
The dissenting members recommended suspending the package until reliable financial information becomes available.
They also raised concerns about possible financial pressure on electricity consumers outside the package.
Chairman Waseem Mukhtar acknowledged these concerns but supported continuing the programme temporarily.
Industrial Consumers Raise Concerns Over Electricity Costs
Industrial consumers have warned that electricity pricing below actual generation costs could create financial complications.
They believe the difference between the approved tariff and actual costs may affect future electricity adjustments.
Such adjustments could increase the financial burden on other electricity users.
The Incremental Consumption Package was introduced in December 2025 to encourage higher electricity demand.
It offered additional electricity units at discounted rates compared with regular industrial tariffs.
The standard industrial electricity rate stood at approximately Rs34.50 per unit in October 2026.
The package was designed to encourage additional consumption without transferring extra costs to other consumers.
However, questions remain about whether the current pricing structure can achieve that objective.
Power Division Criticised Over Delayed Information
All four regulatory members expressed concerns about delays in receiving updated financial calculations.
They held the Power Division and its subordinate organisations responsible for failing to provide the required information.
According to the authority, officials were asked to submit revised calculations six months earlier.
However, the requested information remained unavailable despite repeated reminders.
The delay prevented the regulator from fully assessing the financial impact of the revised package.
The dissenting members also highlighted possible consequences for fuel cost adjustments.
They warned that discounted additional electricity could increase average fuel costs recovered from consumers.
Concerns Over Fuel Cost and Quarterly Adjustments
Fuel Cost Adjustment (FCA) is a mechanism used to recover changes in electricity generation costs.
The opposing members warned that underpriced additional electricity could increase future FCA charges.
They also raised concerns about excluding incremental electricity consumption from quarterly tariff adjustments.
Such exclusions could increase the adjustment burden on consumers who do not benefit from the package.
These concerns have added to questions about the programme’s long-term financial sustainability.
NEPRA Warns of Package Suspension
Chairman Waseem Mukhtar acknowledged the concerns raised by the dissenting members.
However, he said immediately suspending the Incremental Consumption Package would not be appropriate.
Instead, the Ministry of Energy has been given another opportunity to submit the required financial information.
The regulator has established deadlines for providing updated cost calculations and other supporting documents.
Failure to meet these requirements could result in suspension or termination of the package.
Authorities have also warned that continued non-compliance may lead to legal proceedings under the applicable rules.
For now, the revised electricity rate of Rs25.30 per unit will apply from the November billing cycle.
In other news read more about NEPRA Increases Electricity Price By Rs2.37 Per Unit For November Bills
The future of the package will depend partly on the submission and assessment of the outstanding financial information.
