Govt extends Rs46.56bn power tariff relief to consumers
Business
The relief was extended despite persistent volatility in global fuel prices, reflecting the government’s efforts to shield consumers from rising energy costs
ISLAMABAD (APP) - The government, in line with its commitment to providing maximum relief to electricity consumers, has absorbed significant cost pressures and passed on a cumulative relief of Rs 46.56 billion to consumers during the first eight months of fiscal year 2025-26, resulting in a reduction of Rs 0.71 per unit in electricity tariffs.
According to a press release issued on Tuesday, the relief was extended despite persistent volatility in global fuel prices, reflecting the government’s efforts to shield consumers from rising energy costs.
The statement highlighted that industrial consumers have witnessed a particularly substantial decline, with pre-tax tariffs falling from Rs. 49.19/unit (18 cents) in March 2024 to Rs. 34.75/unit (12 cents) in March 2026, a reduction of Rs. 14.44/unit.
The key highlights included, total relief during FY 2025–26 (Jul–Feb): Rs. 46.56 billion, reduction in Consumer-End Tariff: Rs. 0.71/kWh. Industrial Tariff Reduction (Mar 2024 – Mar 2026): Rs. 14.44/unit (from Rs. 49.19/unit to Rs. 34.75/unit)• Net Relief for Jan–Feb 2026: Rs. 26.85 billion. FCA (Jan–Feb 2026): Rs. 21.18 billion (increase). QTA (Jan–Feb 2026): Rs. 48 billion (negative adjustment).
Contrary to concerns regarding tariff increases through adjustments, the actual figures indicate a net relief to consumers. During FY 2025–26 (Jul–Feb), a cumulative relief of Rs. 13.28 billion and Rs. 33.29 billion has been passed on to consumers through Fuel Charges Adjustment (FCA) and Quarterly Tariff Adjustment (QTA), respectively.
While the FCA for January and February 2026 shows an increase of Rs. 21.18 billion primarily due to higher demand and the forced outage of K-3, the QTA for the same period (January and February) reflects a negative adjustment of Rs. 48 billion. This results in a net relief of Rs. 26.85 billion for consumers for this period.
The government remains fully cognizant of ongoing international fuel price volatility and supply disruptions, challenges being faced globally.
Tariff projections are based on multiple variables, including fuel prices, exchange rates, demand patterns, and generation mix.
While prudent assumptions and best available estimates are used to minimize variations, these factors remain inherently uncertain and largely beyond the control of the regulator, DISCOs, and the Government.
In particular, fluctuations in international fuel prices and fuel supply disruptions continue to significantly impact power generation costs, a challenge being faced globally.
In coordination with relevant stakeholders, efforts are underway to mitigate these impacts and protect consumers from undue financial burden going forward.
