The commercial electricity tariff in Pakistan for 2026 sits at around Rs 45.43 per unit under NEPRA’s uniform tariff, while general service connections (typically smaller shops and offices) are billed closer to Rs 43.17 per unit. Industrial consumers got relief in February 2026: small industrial (B1 category, up to 25 kW) rates dropped from Rs 30.80 to Rs 26.23 per unit, following a NEPRA ruling dated 11 February 2026. All of these rates run well above the residential slabs most bill guides cover, because commercial and industrial tariffs don’t have the protected-consumer discount that shields small residential users.
This guide breaks down what “commercial” and “industrial” actually mean on your bill, how the rates compare to residential, and where the extra charges come from. If you’re comparing against a home connection, our per-unit tariff guide covers the residential slabs, and how to calculate your bill walks through the general method that applies to any connection type.
Table of Contents
- Commercial vs Residential vs Industrial: Rate Comparison
- What Counts as a Commercial Connection?
- Why Industrial Rates Dropped in 2026
- Extra Charges on Commercial & Industrial Bills
- How to Estimate a Commercial Electricity Bill
- FAQs
Commercial vs Residential vs Industrial: Rate Comparison
Unlike residential bills, commercial and industrial tariffs are largely flat-rate rather than slab-based, so a small shop and a large showroom on the same connection type pay a similar per-unit rate, with the main difference coming from sanctioned load and peak-demand charges rather than a rising slab.
| Connection type | Approx. rate (Rs/unit) | Slab-based? |
|---|---|---|
| Residential (protected) | 5 – 14 | Yes |
| Residential (non-protected) | 23 – 68 | Yes |
| General Service (small commercial) | ~43.17 | Mostly flat |
| Commercial | ~45.43 | Mostly flat |
| Industrial B1 (up to 25 kW, post-Feb 2026) | ~26.23 (was 30.80) | Peak/off-peak split |
| Industrial B1 peak hours | ~35.74 (was 36.74) | — |
| Industrial B1 off-peak hours | ~25.48 (was 30.05) | — |
These figures are the base NEPRA-notified rates and move with each tariff notification (the current B1 rates are set to hold until the end of December 2026), so treat them as a reference point and confirm the exact figure printed on your bill or your DISCO’s official tariff schedule. Note that B1 industrial consumers now also carry a fixed monthly charge of Rs 1,250 per consumer, introduced for the first time alongside this rate cut.
What Counts as a Commercial Connection?
Your connection category is set when the meter is installed, based on the declared use of the premises, not just what you sell. Shops, offices, clinics, restaurants, showrooms and most rented business premises fall under commercial or general service. If you run a business from a residential meter without formally changing the connection category, you’re technically billed incorrectly, and DISCOs do periodically audit and reclassify connections, which can mean a backdated bill adjustment.
General Service is generally meant for smaller loads (offices, small shops), while Commercial covers larger business premises. The exact threshold and definitions are set by your DISCO’s tariff schedule, so if you’re unsure which category your connection should be, ask your local SDO office to confirm rather than assuming.
Why Industrial Rates Dropped in 2026
In February 2026, the federal government notified a cut to industrial electricity tariffs of up to Rs 4.58 per unit, following a NEPRA ruling dated 11 February 2026, as part of a broader push to lower input costs for manufacturers. For the B1 category (small industrial, up to 25 kW), that took the base rate from Rs 30.80 down to Rs 26.23 per unit, with peak-hour rates easing from Rs 36.74 to Rs 35.74 and off-peak from Rs 30.05 to Rs 25.48. This relief applies specifically to industrial connections and does not extend to commercial or general service categories, so a factory and a retail showroom on the same street can now see meaningfully different year-over-year bill trends even with similar consumption.
If your business has both industrial and commercial-classified connections (for example, a factory with an attached retail outlet), each meter is billed under its own category’s rate, not blended.
Extra Charges on Commercial & Industrial Bills
The base per-unit rate is only part of the total. These apply on top, similar to residential bills but often at different rates:
- Fuel Price Adjustment (FPA): Set monthly by NEPRA, applies across categories including commercial and industrial.
- Quarterly Tariff Adjustment (QTA): Applied periodically to recover capacity costs.
- General Sales Tax (GST): 18 percent, generally applied at the standard rate for commercial/industrial use, sometimes higher than the reduced domestic rate.
- Peak demand / sanctioned load charges: Larger commercial and industrial connections often carry a fixed charge tied to sanctioned kW load, separate from energy consumed. B1 industrial consumers now also pay a flat Rs 1,250 monthly charge per consumer.
- Electricity duty: A provincial charge similar to residential bills.
For a fuller breakdown of how taxes stack on any electricity bill in Pakistan, see our taxes on electricity bill guide.
How to Estimate a Commercial Electricity Bill
- Note your total units consumed for the month from your meter or bill.
- Confirm your connection category (General Service, Commercial, or Industrial) from your bill’s header.
- Multiply units by your category’s approximate per-unit rate from the table above.
- Add FPA, QTA, GST and any sanctioned-load, peak-demand or fixed monthly charges.
- The total is your estimated payable amount; always confirm against the printed bill, since exact rates and charges vary by DISCO and connection size.
FAQs
What is the commercial electricity rate in Pakistan for 2026?
The commercial tariff sits at approximately Rs 45.43 per unit under NEPRA’s uniform tariff structure, with general service connections around Rs 43.17 per unit. These are base rates before FPA, QTA and taxes, and can be revised with each NEPRA notification.
Why did industrial electricity rates decrease in 2026?
The federal government cut industrial tariffs by up to Rs 4.58 per unit starting February 2026, following a NEPRA ruling, as part of relief measures aimed at lowering manufacturing costs. For small industrial (B1) users, the base rate fell from Rs 30.80 to Rs 26.23 per unit. This cut applies to industrial connections specifically, not commercial or residential categories.
Is a home-based business billed at commercial or residential rates?
It depends on how the connection is registered, not just what happens on the premises. A meter registered as residential is billed at residential rates unless and until it’s formally reclassified. Running a business on an unregistered residential connection carries the risk of a backdated adjustment if the DISCO audits and reclassifies it.
How is a shop’s electricity bill different from a factory’s?
Shops are typically billed under General Service or Commercial tariffs, which are largely flat per-unit rates. Factories are billed under Industrial tariffs, which received a specific rate cut in February 2026 and include their own peak/off-peak structure plus, for B1 users, a new fixed monthly charge of Rs 1,250.
Do commercial and industrial bills have slabs like residential bills?
Not in the same way. Residential bills use rising per-unit slabs based on monthly consumption. Commercial and general service tariffs are mostly flat-rate regardless of units used, while industrial tariffs use a peak/off-peak demand structure that differs from the residential slab model.
You can check any bijli bill online from our home page, and see how NEPRA’s 2026 tariff decisions work for the full rebasing context behind these rates.