ISLAMABAD: The Pakistan government has proposed fixed monthly electricity charges ranging from Rs200 to Rs675 for over 28.5 million residential consumers. This move aims to generate around Rs125 billion to fund a Rs4.04 per unit tariff cut for industrial users. The revised Schedule of Tariff (SoT) was submitted to the National Electric Power Regulatory Authority (Nepra) on Friday and will undergo a quick public hearing. An official stated, "This is just a procedural formality. The government guidelines are binding on Nepra." Under the plan, about 9.9 million consumers using less than 100 units monthly will pay Rs200. Those consuming under 200 units (6.1 million users) will be charged Rs300 monthly. Non-protected consumers exceeding 100 units even once in six months face Rs275 fixed charges. The charge rises with consumption, reaching Rs675 for users above 501 units. The power division explained that fixed charges address the high fixed costs of the power system and reduce unfair cross-subsidization as more consumers adopt solar energy. "The present volumetric tariff framework has placed a disproportionate recovery burden on other consumers," the division said. Simultaneously, Nepra approved a fuel cost increase of Rs1.21 per unit for February, up from January. This applies to most consumers except lifeline users, electric vehicle chargers, and pre-paid meter holders. A government official noted that a negative adjustment of 93 paise expired and is replaced by this positive fuel cost adjustment. The government’s tariff rebasing will now occur annually on January 1 instead of the fiscal year to minimize tariff spikes during high consumption months. The total revenue requirement for Distribution Companies (Discos) in 2026 is Rs3.379 trillion, including Rs249 billion subsidy from the federal budget. This electricity tariff shakeup comes amidst criticism from business groups, including the textile industry. As a relief, the Prime Minister announced a Rs4.04 per unit tariff cut for the export sector, funded by these fixed charges on residential users. Published in Dawn, February 7th, 2026.