NEPRA raises power tariff by Rs2 per unit

The additional monthly adjustment will be reflected in electricity bills issued in September. The July adjustment will transfer an additional burden of more than Rs33 billion onto consumers. Separately, Nepra forwarded its decision on the quarterly adjustment for April to June 2026 to the federal government.

Under the quarterly adjustment, electricity tariffs for consumers across the country increased by 52 paisas per unit. The quarterly increase will remain applicable for three months, from September to November 2026, and will also apply to K-Electric consumers.

The quarterly adjustment will impose an additional burden of Rs12.67 billion on electricity consumers. Separately, Nepra allowed the government to require mandatory Battery Energy Storage Systems (BESS) as part of an upcoming auction for 800 megawatts of renewable power capacity from wind and solar projects.

The regulator approved the move through amendments to the "wheeling auction process", allowing the Independent System Operator (Ismo) - a subsidiary of the power division - to formally issue a request for proposals for the first block of the 400MW auction within the current month.

Under the first of three key amendments to the previous wheeling auction process, prospective bidders would be required to commit to having BESS comprise at least 10 per cent of their proposed wind or solar capacity, the regulator stated.

"An auction participant that intends to participate in the auction by utilising solar and/or wind generation technologies shall only be eligible to participate in the auction if the firm capacity of its BESS located at the site of the generation facility is equivalent to at least 10pc of the firm capacity of its solar and/or wind generation facility," it said.

For the first auction conducted by Ismo, participants are to submit their proposals within two months of the publication of the request for proposal (RFP). "This period shall be fixed and non-extendable. For all subsequent auctions, auction participants shall submit their proposals within one month of the publication of the RFP," Nepra said.

The rationale for this provision, apart from it being a standard feature of many procurement and auction frameworks, is to give Ismo flexibility during the implementation of the first auction, as a significant number of prospective participants may seek an extension of the submission deadline.

The amendments also provide for the constitution of a three-member grievance redressal committee, headed by the managing director of the Private Power and Infrastructure Board (PPIB) and comprising two independent directors of the Ismo board, to address complaints or grievances regarding the auction process.

Ismo's extensive modelling of BESS and its financial implications also indicated that returns from installing BESS increased up to a certain capacity.