ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased the electricity rate under the Incremental Consumption Package by approximately 10 percent for eligible industrial and agricultural consumers, while warning the Power Division over repeated delays in submitting the mandatory cost review.
Thank you for reading this post, don't forget to subscribe!In a decision dated November 6, 2026, Nepra raised the package rate from Rs22.98 to Rs25.30 per unit, effective from the November 2026 billing month. However, the increase is provisional and will remain applicable until a comprehensive review is completed. The regulator clarified that the revised rate does not necessarily reflect the actual cost of incremental electricity consumption.
The decision was reached through a split vote, with Chairman Waseem Mukhtar exercising his casting vote. Nepra members Amina Ahmed (Tariff and Finance) and Maqsood Anwar Khan (Development) dissented, arguing that the package should have been suspended until the Ministry of Energy’s Power Division submitted a proper cost assessment.
The dissenting members described the Rs25.30 rate as a “random number”, arguing that it was based on the generation mix assumed when the package was originally designed, with only fuel prices subsequently updated.
They noted that Nepra’s tariff team had estimated the marginal cost at approximately Rs31.83 per unit, which declined to Rs29.65 after adjustments. However, they maintained that even this estimate was unreliable and remained above the off-peak electricity rate.
The dissenting members said suspending the package with adequate advance notice was “the least the Regulator could and should have done”. They also warned that delays in reviewing the tariff had shifted costs onto consumers outside the package through fuel cost adjustments.
In an additional note, Chairman Waseem Mukhtar acknowledged that the dissenting views merited “serious consideration” but maintained that suspending the scheme would be inappropriate at this stage, arguing that the Ministry deserved “one more chance” to complete the review.
He observed that the Ministry, the Independent System and Market Operator and the Power Planning and Monitoring Company had failed to provide the required marginal price data in the prescribed format.
The chairman warned that failure to meet the revised deadlines could lead to legal proceedings and the suspension or termination of the package.
Nepra has directed the Power Division to submit the required data and analysis for two review periods: December 2025 to May 2026 and June to November 2026.
Data covering the period up to November 15 must be submitted by November 25, while the remaining information is due by December 3. The submission must include PLEXOS-based modelling and a clear recommendation on whether the package should continue, be revised or discontinued.
PLEXOS is an advanced electricity market simulation and power system planning software used by governments, utilities, regulators, energy companies and investors to assess power system operations, generation requirements and electricity costs.
The Incremental Consumption Package was approved on December 9, 2025, for a period of three years to encourage industrial consumers to increase electricity consumption from the national grid.
The scheme also contains a termination provision if upward tariff adjustments become necessary in two consecutive reviews. Meanwhile, Nepra has decided not to apply the revised rate retrospectively to October 2026 electricity bills.
Story by Israr Khan
