July–Feb: Consumers provided Rs46.56bn relief: PD

ISLAMABAD: The Power Division said on Tuesday that consumers were provided relief amounting to Rs46.56 billion during the first eight months (July–February) of FY 2025-26.

According to an official statement, the government, in line with its commitment to provide maximum relief to electricity consumers, absorbed significant cost pressures to ensure that the benefits of tariff adjustments are passed on to the public. Despite global fuel price volatility, cumulative relief of Rs46.56 billion was extended during July–February, resulting in an overall reduction of Re0.71 per kWh in end-user tariffs.

Industrial consumers witnessed a particularly sharp decline in tariffs, with pre-tax rates falling from Rs49.19 per unit (18 cents) in March 2024 to Rs34.75 per unit (12 cents) in March 2026—a reduction of Rs14.44 per unit.

The statement highlighted that total relief during FY 2025–26 (July–February) stood at Rs46.56 billion, while the reduction in consumer-end tariff was Re0.71 per kWh. It further noted a net relief of Rs26.85 billion for January–February 2026, despite an increase of Rs21.18 billion in Fuel Charges Adjustment (FCA) and a negative Quarterly Tariff Adjustment (QTA) of Rs48 billion during the same period.

The Power Division maintained that contrary to concerns regarding tariff increases through adjustments, actual figures indicate a net relief to consumers. During FY 2025–26 (July–February), cumulative relief of Rs13.28 billion and Rs33.29 billion was passed on through FCA and QTA, respectively.

While the FCA for January and February 2026 increased due to higher demand and the forced outage of K-3, the negative QTA more than offset this impact, resulting in net consumer relief.

The government also acknowledged ongoing international fuel price volatility and supply disruptions, noting that such factors continue to significantly influence power generation costs worldwide.

Tariff projections, it said, are based on variables such as fuel prices, exchange rates, demand patterns, and the generation mix. Despite the use of prudent assumptions, these elements remain uncertain and largely beyond the control of the regulator, distribution companies (DISCOs), and the government.

The statement added that in coordination with relevant stakeholders, efforts are under way to mitigate these challenges and protect consumers from undue financial burden in the future.