NEPRA to consider Rs3.49 per unit electricity price hike

ISLAMABAD: The Central Power Purchasing Agency (CPPA) submitted a proposal to National Electric Power Regulatory Authority (NEPRA) to increase the electricity price by Rs. 3.49 per unit for a duration of one month.

The request was prompted by the need to adjust fuel prices for April. NEPRA has scheduled a hearing for the Central Power Purchasing Agency’s request on May 30.

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Approval of the proposal could potentially shift a burden of Rs34.5 billion to consumers, although not all electricity consumers will be affected by the increase.

Previously, the Ministry of Energy assured the International Monetary Fund (IMF) it will raise tariffs on basic electricity. Many expected the increase in electricity prices to take effect from July 1 nationwide.

The increase in electricity price was expected to follow the adjustment in the multi-year tariff by the NEPRA. Many predicted the retail price of electricity to rise by Rs7 per unit.

The IMF also demanded changes in the country’s tax regime, including ending tax exemptions, incentives, and privileges. The money lending organisation further demanded an increase in taxes on luxury plots, cars, and the property sector.

NEPRA approved the increase in electric prices by Rs2.83 per unit just last week. Only lifeline and K-Electric consumers were exempted from the previous hike. The price increase was also proposed by the CPPA.

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The regulatory department attributed the price hike to the monthly fuel adjustment for March. The adjustment was based on consumption metrics for the same month.

The government had earlier requested NEPRA to impose an additional Rs23 billion in Fuel Cost Adjustment (FCA) from consumers for March’s electricity usage.