Nepra raises industrial power rate to Rs25.30 a unit on chairman’s casting vote as November bills carry an extra Rs2.37 fuel charge

Pakistan's power regulator has raised the special electricity rate for industrial consumers from Rs22.98 to Rs25.30 per unit, a decision taken on the chairman's casting vote after the authority split evenly, while households and businesses across the country will also pay an extra Rs2.37 per unit in their November bills under a separate fuel cost adjustment.

The National Electric Power Regulatory Authority (Nepra) announced the revision on Friday, lifting the rate under the incremental support package introduced in December last year to encourage industries to buy more electricity from the national grid. The new rate of Rs25.30 per unit applies from the November 2026 billing month and covers eligible industrial and private agricultural consumers of the former WAPDA distribution companies and K-Electric.

The decision was far from unanimous. Nepra's four members divided two-two on the revision, and Chairman Waseem Mukhtar exercised his special casting vote to approve the higher rate. Member Tariff Amina Ahmed and Member Development Maqsood Anwar, the two members most directly responsible for tariff and development matters, opposed it in a joint dissenting note, describing the Rs25.30 figure as a random number unsupported by evidence.

The dissenting members pointed to Nepra's own institutional calculations, which put the marginal cost of supplying additional electricity at Rs31.83 per unit rather than Rs25.30. In an unusual twist, Dawn reported that the chairman fully endorsed the written arguments and positions taken by the dissenting members, yet still cast his deciding vote in favour of the revised rate instead of retaining the existing Rs22.98.

The rate applies only to incremental consumption, meaning electricity used above a consumer's past usage, measured against a reference period from December 2023 to November 2024. Normal consumption continues to be billed at the ordinary tariff. Nepra has stressed that the Rs25.30 rate is provisional rather than a final determination of the actual cost of supplying additional power, leaving open the possibility of further revision.

The package was due for review after its first six months in June, but the review came late. The Power Division submitted its request only after repeated reminders from the regulator, and Nepra then approved the increase. The delay, and the way the figure was settled, have become part of the controversy around a package that was originally meant to revive industrial activity by rewarding factories that used more grid power.

Separately, Nepra allowed power distribution companies to charge all consumers an additional Rs2.37 per unit in their November bills under the monthly fuel cost adjustment mechanism. The adjustment is expected to recover about Rs25 billion in additional fuel-related costs, and it applies to consumers served by the distribution companies and K-Electric alike, including households that are not covered by the industrial package.

The industrial sector opposed the revision. Dawn reported that industry representatives argued the package had not delivered the benefits expected of it and had instead added to electricity bills. For manufacturers, power is one of the largest costs of production, and higher rates feed directly into the price of goods, the competitiveness of exports and decisions about whether to expand or cut back output.

The increase lands at a difficult moment for Pakistan's economy. Electricity pricing has been one of the most sensitive issues in the country for years, with governments caught between the need to recover the cost of generation, reduce the circular debt that has weighed on the power sector, and protect industry and households from bills they say they cannot afford. Successive tariff decisions have been watched closely by businesses, consumers and the country's international lenders.

What consumers will notice first is the November bill. Industrial users on the incremental package will see the higher Rs25.30 rate on their additional consumption, while every consumer will see the Rs2.37 fuel adjustment added to the same month's bill. Because the new industrial rate is provisional, the regulator could revisit it, and the dissent from two of its own members is likely to keep the question of how the figure was calculated in focus in the weeks ahead.

Figures in this report were checked at 10:53 PKT on 7 November 2026.

This post is market news information only, not financial advice.