Electricity consumers brace for possible Rs5 per unit price hike

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is set to consider a request from the Central Power Purchasing Agency (CPPA) for a further Rs5 per unit hike in electricity price.

If approved, this move could impose an additional burden of over Rs310 billion on consumers.

Read more: NEPRA to consider Rs3.49 per unit electricity price hike

The CPPA has presented seven scenarios for power purchase prices, ranging from Rs25.03 to Rs27.11 per unit for the fiscal year 2024-25. NEPRA is set to decide on this proposal soon. The potential burden of power purchase prices expected to reach Rs3.58 trillion if approved.

In addition to the proposed base tariff hike, consumers may also face an increase in tariff due to fuel charges adjustment (FCA) for April 2024. The CPPA, on behalf of power distribution companies (DISCOs), has requested a Rs3.49 per unit increase, which NEPRA will deliberate on in a public hearing scheduled for May 30.

Read more: IMF asks Pakistan to increase gas prices

Pakistan’s power sector is already grappling with a significant increase in circular debt, which has soared to Rs2,635 billion as of January 2024. Despite efforts to raise power tariffs and adjust fuel charges, the circular debt continues to rise, posing financial challenges for both consumers and the sector.