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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday warned that circular debt could not end without reducing system and improving recoveries as the government sought more than Rs2 per unit increase in power rates for three months and about Rs11per unit reduction for the industrial and agricultural sectors on incremental consumption for three years.

The regulator conducted a public hearing for additional recovery worth Rs8.4 billion from all consumers over the coming three months — December to February 2026 — under quarterly tariff adjustment (QRA) for the first quarter (July-September) that would result in a per unit additional charge of about 50 paise per unit.

Since a previous negative QTA of about Rs1.80 per unit is expiring this month, the consumers would be paying a Rs2.30 per unit net higher cost in the December-February period.

Separately, Nepra called a public hearing on Nov 11 on another government directive for slashing power rates on incremental consumption by Rs11 per unit to Rs22.98 per unit for industrial and agricultural users to revive consumption that has plummeted by 14pc and 47pc, respectively.