ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has increased the special electricity rate for eligible industrial and agricultural consumers from Rs22.98 to Rs25.30 per unit, despite objections from two members who called for the incentive scheme to be suspended.
The revised rate will apply from November 2026 billing to qualifying consumers of K-Electric and former WAPDA distribution companies under the Incremental Consumption Package (ICP).
The scheme covers electricity consumed above the reference usage recorded between December 2023 and November 2024. It was originally introduced to encourage industrial activity, increase grid consumption and make better use of available electricity generation capacity.
NEPRA’s November 6 decision allows the package to continue at the revised rate until a comprehensive assessment of the actual cost of supplying additional electricity is completed.
NEPRA members disagree over rate revision
The decision followed disagreement within the regulator. Members Amina Ahmed and Engineer Maqsood Anwar Khan opposed the increase, arguing that the government had failed to provide sufficient cost data to justify the revised rate.
They recommended temporarily suspending the package until the Power Division submitted a complete and verifiable assessment.
Chairman Waseem Mukhtar supported continuing the scheme and used his casting vote to approve the revised rate, giving the ministry another opportunity to submit the required information.
NEPRA estimated the marginal cost of additional electricity at Rs29.65 per unit for the review period. However, it clarified that this was a provisional estimate rather than a final determination of the actual cost.
Risk of additional burden on consumers
The regulator warned that keeping the special rate below the actual cost of supplying additional electricity could shift the difference onto consumers outside the incentive scheme through fuel cost adjustments. NEPRA also criticised the Power Division for repeatedly failing to provide the detailed calculations and operational data required for the review.
The authority has directed the ministry to submit a comprehensive assessment covering two review periods, from December 2025 to May 2026 and June to November 2026. The Power Division must provide the available analysis by November 25, with the remaining data due on December 3.
NEPRA warned that continued delays or failure to establish cost-revenue alignment could lead to the package being revised, suspended or terminated. Under the original framework, the scheme can be terminated if upward rate adjustments are required in two consecutive reviews.
