NEPRA approves Rs2.83 per unit hike in electricity price

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has sanctioned a significant increase in electricity tariffs, imposing an additional burden on the inflation-weary populace of Pakistan.

In a move that will see power costs surge by Rs2.83 per unit, NEPRA has cited the monthly fuel adjustment for March as the rationale behind this escalation. This adjustment will be conspicuously reflected in the forthcoming electricity bills for the current month.

However, this price increase will not affect the lifeline consumers and users of K-Electric. The Central Power Purchasing Agency (CPPA) had initially petitioned for this hike, which has now been formally ratified by NEPRA.

A NEPRA notification said that the revised charges are “to be applied across all consumer categories with the exception of electric vehicle charging stations (EVCS) and lifeline consumers.”

Also read: K-Electric seeks nine-month fuel price adjustment from NEPRA

The notification further elucidated that the adjustment will be manifested in the bills based on the consumption metrics of March. The government’s previous request to NEPRA aimed to levy an additional Rs23 billion in FCA from consumers for March’s electricity usage, despite a substantial 79 percent of power being generated from more economical, indigenous fuels.

The CPPA, an affiliate of the Power Division, had proposed a steeper Rs2.94 per unit in additional fuel costs to be recuperated from consumers in the May billing cycle.

This proposed FCA represented a nearly 46 percent increment over the pre-established fuel cost of Rs6.44 per unit, which was already billed to consumers in March. This has sparked a debate regarding the power sector bureaucracy’s ability to accurately forecast fuel costs, even for a span of six to seven months. In recent times, the additional FCAs have fluctuated, ranging from 50 to 115 percent above the predetermined fuel costs announced at the onset of the current fiscal year.