NEPRA Raises Incremental Electricity Rate for Pakistan Industry and Farms to Rs 25.30 From November 2026

NEPRA has raised the electricity rate on extra units used by factories and private farms from Rs 22.98 to Rs 25.30 a unit, starting with November 2026 billing. The new rate is provisional, and the Incremental Consumption Package continues rather than being suspended. Home users are not on this package, so their tariff does not change through this decision.

The National Electric Power Regulatory Authority (NEPRA) issued the decision on 6 November 2026. It has sent it to the Federal Government for notification in the official Gazette, as section 31(7) of the NEPRA Act requires. We read the full decision and the dissent on NEPRA's website. Two of the four signing members disagreed.

The rate on extra units goes from Rs 22.98 to Rs 25.30

The Rs 25.30 rate applies to eligible incremental consumption from the November 2026 billing month and later months, until NEPRA decides again. Bills already issued for November before the notification will be adjusted in a later month, the order says.

The Power Division had asked for the new rate from October 2026. NEPRA chose November because October billing was already mostly complete. The fuel charge also still applies to these units, and the September rate of Rs 2.3673 is in the November FCA decision.

Only industry and private farms can use this package

The package covers industrial and private agricultural consumers of the ex-WAPDA companies and K-Electric. They pay the special rate only on units above their reference use for December 2023 to November 2024. It was approved for three years in December 2025.

So it is not a cut on a whole bill. A factory pays its normal tariff on its reference units and the package rate on eligible extra units. Time of use and non time of use consumers both qualify. Eligibility details sit in the original decision, notified as S.R.O. 2409(I)/2025 on 10 December 2025. The earlier stage of this review is in NEPRA's Rs 22.98 review hearing.

1. Check your connection is an industrial or private agricultural one.
2. Find your reference use from the December 2023 to November 2024 period.
3. Compare it with your current billed units.
4. Check that the extra units on your November bill show at the new rate.
5. If the bill looks wrong, take it to your sub-division with the earlier bills.

NEPRA found the old rate may not cover the cost

An estimate built on system operator data put the cost of serving these extra units above Rs 22.98 in several months. NEPRA says the estimate has limits and is not final, but it would not leave the old rate running while fuel prices rise.

These are NEPRA's printed figures, shown as they appear. The monthly units add to 3,968 million against a printed total of 3,969, and the printed Rs 29.65 average is not a plain mean of the rows. We could not explain the gap from the scan. The scan does not show the month headings clearly, so we matched the months from the review period of December 2025 to May 2026.

NEPRA calls these figures notional. It says they do not count every adjustment and that new model runs are still needed. The decision also records a shift to dearer fuel, with reliance on higher priced spot RLNG alongside contracted Qatar RLNG. The Power Division proposed Rs 25.30 using a fuel mix of half spot cargoes and half contracted cargoes, and NEPRA adopted it for now without treating it as the true cost.

Two members wanted the package suspended

The decision records a dissent from the Member (Tariff and Finance) and the Member (Development). They say Rs 25.30 is not tied to the actual cost, and that the correct step was a temporary suspension with notice until a full review arrives.

Their note says NEPRA's tariff team first calculated about Rs 31.83 a unit, then Rs 29.65 after some data corrections. They add that Rs 29.65 would be above the off-peak rate on the normal tariff, which would defeat the purpose of the package. The Chairman and the Member (Law) took the other view, and the Chairman used his casting vote to break the tie, so the package keeps running. The original decision says a package needing upward revision in two reviews in a row must end, and NEPRA says this decision does not waive that rule.

Stakeholders at the 5 October hearing raised a wider worry. Anyone not on the package may have paid part of the difference through the fuel charge. NEPRA itself says that difference has been paid by all consumers through the FCA while the review was delayed. It has not ordered any recovery from package users in this decision, and it leaves the question open.

The Power Division must send its full review by 3 December

NEPRA has told the Ministry of Energy, Power Division, to send data for December 2025 to 15 November 2026 by 25 November, and the rest by 3 December. NEPRA will then decide the final rate and whether the package continues.

The review must include model runs with and without the extra demand, separately for the two six month periods. NEPRA also wants a way to identify furnace oil based captive consumers who may have used the package in breach of its terms, and action where misuse is shown. It says no conclusive evidence of misuse is on record so far.

If you run a factory or a farm tube well, watch two things: the Gazette notification and your December bill. Income tax on commercial and industrial bills is a separate line, which is explained in Section 235 tax on electricity bills.

Common questions

What is the new incremental package rate?

Rs 25.30 a unit on eligible extra units, on a provisional basis, from the November 2026 billing month.

Does this raise household electricity bills?

Not directly. The package covers only industrial and private agricultural consumers. NEPRA says the cost gap has been shared by all consumers through the fuel charge while the rate was unchanged.

Has the package been suspended?

No. The order says it continues at the provisional rate, while keeping open a later decision to revise, change or end it.

Is the new rate notified?

NEPRA has sent the decision to the Federal Government for notification. We had not seen the Gazette notification when we wrote this on 7 November 2026.

What if my November bill still shows Rs 22.98?

The order says bills already issued for November before notification are adjusted in a later month. Check your next bill for the adjustment.

What we read

We read NEPRA's semi-annual review decision and the dissent on 7 November 2026. The month headings in the cost table are hard to read in the scan. We matched them to the December to May review period that NEPRA names in the same decision.