Govt proposes fixed power charges for homes, promises per-unit tariff cuts

The federal government has proposed a wide overhaul of domestic electricity tariffs that would introduce fixed monthly charges for households while reducing per-unit rates for several consumption slabs during calendar year 2026.

The plan was presented as Nepra began hearings on a tariff restructuring petition by the Power Division. Under the proposal, fixed charges would apply to both protected and non-protected domestic consumers, including those using up to 300 units per month — a shift from the earlier approach where fixed charges largely applied to higher-usage non-protected consumers.

For protected consumers, the proposal includes monthly fixed charges of Rs200 for up to 100 units and Rs300 for up to 200 units, alongside a reduction in subsidy allocations for those slabs. For non-protected consumers, fixed charges have been proposed across lower slabs as well, while officials said the broader objective is to reduce cross-subsidies and lower industrial tariffs.

The proposal also outlines per-unit tariff reductions for several household usage ranges, including relief of up to Rs1.53 per unit for certain slabs, with smaller reductions for higher-usage categories. Officials estimated the fixed-charge component could generate substantial annual revenue, which would be redirected to support the industrial sector.

Separately, the debate over rooftop solar policy continued in the Senate, where the power minister defended changes to the net-metering framework and said existing contracts would remain protected while newer rules would apply to future consumers. Nepra is expected to issue a final determination after consultations are completed.