NEPRA Reviews Rs 22.98 a Unit Power Rate for Pakistan's Factories and Farms
NEPRA is reviewing the Rs 22.98 a unit rate on extra power for factories and private farms. See who it covers, the three questions asked and what is pending.
NEPRA is reviewing the Rs 22.98 a unit electricity rate that factories and private farms pay on extra power they use. A public hearing on the six-monthly review was noticed for 5 October 2026 at NEPRA Tower in Islamabad. No decision has been published yet. Home users are not covered by this rate.
The review matters because the rate could go up, or the whole scheme could be paused. We read NEPRA's own pages and the 2025 notification that created the package. This page separates what is official from what was only reported at the hearing.
The package gives a fixed rate on extra units only
The Incremental Consumption Package charges industrial and private agricultural users Rs 22.98 a unit, but only on units above their own past use. Their normal consumption stays on the normal tariff. The package was approved on 9 December 2025.
NEPRA's notification says the rate applies to industrial and private agricultural consumers of the ex-WAPDA distribution companies and K-Electric. Both time-of-use and ordinary meters are included. It covers peak and off-peak extra units.
"Extra" is measured against a reference period of December 2023 to November 2024. Only units above that old usage get the Rs 22.98 rate. A factory that uses the same power as before sees no change.
The notification also lists who does not benefit. Units billed as detection units are left out. Consumers with a defective or locked meter in a billing month are not eligible. Subsidy differentials cannot be claimed on the extra units.
| Point | What NEPRA's notification says |
|---|---|
| Rate | Rs 22.98 a unit on incremental use |
| Who | Industrial and private agricultural consumers |
| Reference period | December 2023 to November 2024 |
| Review | Every six months |
| Ends early if | Two reviews in a row need a higher rate |
NEPRA put three questions to the hearing
The hearing notice asked whether the package should be paused because of fuel prices, whether the Rs 22.98 rate should rise to match the real marginal cost of power, and from which billing month any rise should start.
The start month options in the notice were June 2026, October 2026 or another date NEPRA decides. This matters for money. A rise from June would reach back and change bills that were already paid.
Marginal cost means the cost of producing one more unit of power at that hour. The package rate was meant to cover it. If the real cost is higher, other consumers end up paying the gap through the system.
- Should the package be paused for now because of fuel prices?
- Should the Rs 22.98 rate go up to match marginal cost?
- If it goes up, should the new rate start from June 2026, October 2026 or another month?
The Power Division asked for a higher rate
It was reported that the Power Division argued the average marginal cost had been above the Rs 22.98 rate for several months. The figure given was Rs 27.58 a unit as a weighted average from December to May, and Rs 31.83 after losses.
We could not read the hearing record, so these figures are reported, not confirmed from a NEPRA document. Treat them as the Power Division's case, not as NEPRA's finding.
Reports also said two interveners spoke. One asked for the rate to follow actual marginal cost from June 2026 and for refunds to users who did not benefit. The other argued the package is not needed and should be suspended, saying home and shop users carry an unfair share of the cost.
A rise would not touch home bills directly
A change to this rate would not set a new price for a home meter. Your slab rates and fuel charge are decided separately. But the review decides who pays for the gap between the package rate and the real cost of power.
NEPRA's own notice list shows the October bill items that do reach homes. For those, see our report on the fuel charge approved for October bills and the earlier piece on the October fuel charge increase.
The package also has a safety valve. NEPRA's decision says the scheme ends at once if an upward change is needed in two reviews in a row. It also expires on its own after three years. If this review raises the rate, the next one becomes the one to watch.
What farm and factory owners should do now
Check your own bill first. Find whether your units above the old reference period are billed at Rs 22.98, and keep your last six bills. If NEPRA raises the rate from an earlier month, you may see an adjustment.
A farm with a tubewell connection should know its connection class. Our guide to a tubewell electricity connection explains the process. A wrong tariff class is a common reason for a billing dispute.
If you think your bill ignores the package, take the complaint to your electricity company first and then to NEPRA. The guide on complaining about a wrong electricity bill lists the steps. NEPRA's other deadlines for the companies are in the report on new service deadlines.
NEPRA is also hearing the 2027 tariff requests of ten power companies, a separate process described in our report on the 13 to 15 October hearings.
Common questions about the Rs 22.98 package
Has NEPRA decided to raise the Rs 22.98 rate?
Not as far as we can see. When we checked NEPRA's site on 8 October 2026, the latest decision listed was the August fuel charge adjustment. No order on this package was shown.
Does the package apply to my home electricity bill?
No. The notification covers industrial and private agricultural consumers only. Home users pay their normal slab rates.
What does incremental consumption mean?
It means units used above your own past usage. For this package the past usage is measured from December 2023 to November 2024.
Can the package be stopped?
Yes. NEPRA's notification says it ends at once if two reviews in a row need a higher rate. The hearing notice also asked whether it should be paused because of fuel prices.
Were refunds ordered for anyone?
No order has been published. One speaker at the hearing was reported to have asked for refunds to users who did not benefit. That is a request, not a ruling.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 8 October 2026. The package terms come from NEPRA's notification of 10 December 2025 on its own site. The hearing date, time and the three questions come from the hearing notice listed on NEPRA's site. We could not read the hearing record, so the Power Division's cost figures and the interveners' views are reported and not confirmed. NEPRA's decision, when it appears, will be on nepra.org.pk.
About the author
Senior Writer, Public Services and Technology
Shahid joined us in 2024 as an author. He is a senior contributor to Pakistan's leading technology websites. He writes detailed articles, mostly covering his expertise in the latest tech, mobiles, apps, gadgets, and step-by-step guides. His ideology is to help people understand the latest trends and explain complex methods through very easy-to-understand guides.
