How TESCO Tariffs Work
TESCO, like all electricity distribution companies in Pakistan, follows the tariff schedule determined by the National Electric Power Regulatory Authority (NEPRA). Electricity tariffs in Pakistan use an incremental slab-based system where the per-unit rate increases as your consumption rises. Understanding these slabs is essential for managing your electricity costs, especially as fuel price adjustments and quarterly tariff adjustments can significantly impact your monthly bill.
The merged tribal districts have historically received electricity at subsidized rates or through informal connections. As TESCO formalizes the electricity supply system, consumers are now being billed under the standard NEPRA tariff schedule. This guide explains how these tariffs are calculated.
Residential Tariff Slabs (Protected)
Protected consumers are those using up to 200 units per month in non-peak months. They benefit from lower rates:
| Slab | Units Range | Rate per Unit (Rs) | Applies When |
|---|---|---|---|
| Slab 1 | 1–100 units | 7.74 | Total ≤ 100 units |
| Slab 2 | 101–200 units | 10.06 | Total ≤ 200 units |
Residential Tariff Slabs (Unprotected)
If your consumption exceeds 200 units in any month, you are classified as unprotected and all units are charged at higher rates:
| Slab | Units Range | Rate per Unit (Rs) |
|---|---|---|
| Slab 1 | 1–100 units | 19.07 |
| Slab 2 | 101–200 units | 22.27 |
| Slab 3 | 201–300 units | 25.80 |
| Slab 4 | 301–400 units | 27.22 |
| Slab 5 | 401–500 units | 29.36 |
| Slab 6 | 501–600 units | 30.48 |
| Slab 7 | 601–700 units | 33.36 |
| Slab 8 | 700+ units | 35.00 |
The jump from protected to unprotected is dramatic. A consumer using 200 units pays approximately Rs 2,000 in energy charges, while crossing to 201 units could result in a bill of Rs 5,000+ because all units are re-calculated at higher rates.
Commercial and Industrial Tariffs
| Category | Fixed Charge (Rs/kW/month) | Variable Rate (Rs/kWh) |
|---|---|---|
| Commercial (General) | Rs 500 | Rs 25–30 |
| Industrial B1 (< 25 kW) | Rs 500 | Rs 22–27 |
| Industrial B2 (25-500 kW) | Rs 500 | Rs 20–25 peak / Rs 16–20 off-peak |
| Industrial B3 (> 500 kW) | Rs 500 | Rs 18–22 peak / Rs 14–18 off-peak |
| Agricultural Tube Well | Varies | Rs 8–14 |
| Bulk Supply | Based on agreement | Negotiated rates |
Agricultural tube well connections in tribal districts often receive subsidized rates as part of the government's agriculture support program. Industrial connections with Time-of-Use (ToU) meters get different peak and off-peak rates.
Additional Charges on Your Bill
| Charge | Rate / Amount | Applies To |
|---|---|---|
| Fuel Price Adjustment (FPA) | Rs 1–5 / kWh (monthly) | All consumers |
| Quarterly Tariff Adj. (QTA) | Rs 0–3 / kWh | All consumers |
| General Sales Tax (GST) | 17% | Bills > Rs 25,000 |
| Income Tax (WHT) | 7.5% (filer) / 12% (non-filer) | Bills > threshold |
| Electricity Duty | 1.5% | All consumers |
| PTV Fee | Rs 35/month | All domestic consumers |
| Further Tax | 3% | Non-filer commercial |
| FC Surcharge | Rs 0.43/kWh | Where applicable |
FPA is the most volatile component — it changes every month based on actual fuel costs versus reference fuel costs. In months with high oil or gas prices, FPA alone can add Rs 3-5 per unit to your bill. Filing your income tax return reduces the WHT from 12% to 7.5%, saving significantly on higher bills.
How to Reduce Your TESCO Bill
Practical strategies for TESCO consumers:
- Stay under 200 units/month to maintain protected consumer status — this alone saves 50%+ vs unprotected rates.
- Replace incandescent bulbs with LED bulbs — each LED saves 10-12 watts per hour.
- Use fans instead of air conditioners where possible — a fan uses 75W vs AC at 1,500W.
- Turn off lights and appliances when not in use — phantom loads add up.
- Use inverter technology appliances (refrigerator, AC, washing machine) — they consume 30-50% less energy.
- Consider solar panels for daytime usage — even a small 1 kW system can significantly reduce grid consumption.
- Use energy-efficient cooking methods — electric stoves consume massive amounts of electricity.
- Ensure good insulation in rooms to reduce heating/cooling needs.
- Monitor your meter reading weekly to catch abnormal consumption early.
- File income tax returns to pay 7.5% WHT instead of 12% — significant savings on bills above Rs 25,000.
Frequently Asked Questions
What are current TESCO electricity rates per unit?
Rates range from Rs 7.74 per unit (protected, up to 100 units) to Rs 35/unit for highest slab. Rates are set by NEPRA.
What is protected vs unprotected consumer?
Protected consumers use ≤200 units/month and pay significantly lower rates. Exceeding 200 units reclassifies all units at higher rates.
Why did my bill suddenly double?
Likely you crossed the 200-unit threshold, switching from protected to unprotected rates. Even 1 extra unit triggers the higher slab.
What is FPA on TESCO bill?
Fuel Price Adjustment — a monthly charge that passes through actual fuel costs. It varies each month based on international fuel prices.
How to stay under 200 units?
Use LED bulbs, limit AC usage, turn off unused appliances, and use energy-efficient refrigerators.
Do tribal areas get subsidized electricity?
Some government programs provide subsidies. The Lifeline tariff exists for consumers using under 50 units.
Why does non-filer pay more tax?
Non-tax filers pay 12% WHT vs 7.5% for filers. Filing your return with FBR reduces this significantly.
What is peak vs off-peak rate?
Industrial ToU meters charge higher during peak hours (6 PM-10 PM) and lower during off-peak. Residential consumers have flat rates.
How often do NEPRA rates change?
Major tariff reviews happen annually. FPA changes monthly and QTA changes quarterly.
Is there a minimum bill amount?
Yes, even zero consumption incurs a minimum charge (usually Rs 75-200 depending on connection type).
How to file complaint about wrong tariff?
Contact TESCO subdivision office or call 0927-410426. You can also file with NEPRA directly.