Tag: Electricity Rates

  • Nepra approves up to 51% increase in electricity prices for residential consumers

    Nepra approves up to 51% increase in electricity prices for residential consumers

    The National Electric Power Regulatory Authority (Nepra) has approved a significant increase of up to 51 per cent in the base electricity rates for residential consumers. This adjustment is part of a new tariff schedule aimed at addressing rising energy costs.

    Under the revised rates, consumers using up to 200 units per month will see their tariffs remain unchanged until September 2024. However, from October 2024 onwards, substantial hikes will take effect, impacting millions of households across the country.

    For protected consumers using up to 100 units monthly, the tariff will rise from the current Rs7.74 to Rs11.69 per kilowatt-hour (kWh), representing a steep 51 per cent increase.

    Similarly, those consuming between 101 and 200 units will face a 41 per cent increase, with rates jumping from Rs10.06 to Rs14.16 per kWh. Notably, over 15.5 million consumers fall into this protected category.

    Non-protected consumers will also bear the brunt of these increases. For those using up to 100 units, the tariff will rise by 43 per cent, escalating from Rs16.48 to Rs23.59 per kWh. For consumption between 101 and 200 units, the rate will increase by 31 per cent, from Rs22.95 to Rs30.07 per kWh.

    For consumers exceeding 200 units, tariff increases will vary between 14 per cent and 26 per cent, effective from July 2024, with no additional changes expected for the rest of the fiscal year. Additionally, fixed charges ranging from Rs200 to Rs1,000 per kWh have been introduced for these categories.

    Nepra conducted a public hearing on 8 July to discuss government requests for an additional burden of over Rs700 billion to be passed on to electricity consumers through an average national tariff increase.

    In its final order, Nepra stated, “The authority has no objection in approving the motion along with the subsequent addendum of the federal government.”

    As a result of these changes, the average base electricity tariff will rise by Rs3.29 per unit, bringing it to Rs33.07—an 11 per cent increase compared to the fiscal year 2023-24. This decision marks a significant shift in the financial landscape for residential electricity consumers across Pakistan.

  • K-Electric seeks Rs10.69 per unit hike in basic power tariff

    K-Electric seeks Rs10.69 per unit hike in basic power tariff

    K-Electric has proposed a substantial increase in its basic power tariff, seeking to raise the rate by Rs10.69 per unit to reach Rs44.69 per unit.

    This proposal has been made under the 7-year Multi-Year Tariff (MYT) framework.

    Currently, K-Electric’s average basic tariff stands at Rs34 per unit. The utility company has detailed its request, including specific components for the proposed increase. The Energy Purchase Price (EPP) component is to be set at Rs18.88 per unit.

    Additionally, transmission charges are projected to be Rs3.48 per unit, and distribution charges at Rs3.84 per unit. Operation and maintenance costs are requested to be Rs0.42 per unit, while the retail margin is sought to be Rs0.59 per unit.

    Furthermore, K-Electric has asked for the recovery of lost allocation at Rs2.88 per unit and working capital at Rs2.07 per unit.

    The National Electric Power Regulatory Authority (NEPRA) has invited stakeholders to submit their feedback on K-Electric’s request within the next seven days.

    A decision on the proposal is anticipated soon. If approved, the new tariff will impact millions of electricity consumers in Karachi and its surrounding areas.

    Last month, K-Electric submitted a request for a significant hike of Rs18.86 per unit in the power tariff. This adjustment was based on the Fuel Charge Adjustments (FCA) for seven months, submitted to NEPRA.

    Concurrently, K-Electric also requested a reduction in the power tariff by Rs0.29 per unit for a two-month period.

    In another development, the federal government has outlined a plan to privatise several profit-making power distribution companies (Discos). The companies slated for privatisation include Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO), and Faisalabad Electric Supply Company (FESCO).

    These developments come at a critical time for Pakistan’s power sector, where tariff adjustments and privatisation efforts are expected to have significant implications for both the economy and consumers.

  • NEPRA announces increase in electricity tariff, impacting November bills 

    NEPRA announces increase in electricity tariff, impacting November bills 

    In yet another unsettling development for power consumers already burdened by rising costs, the National Electric Power Regulatory Authority (NEPRA) has announced an increase of Rs0.40 per unit in the electricity tariff.  

    This adjustment, approved by NEPRA in response to the monthly fuel adjustment for September, will result in higher charges on November bills for electricity consumers. 

    It’s important to note that this tariff hike will affect all consumer categories, except for those classified as lifeline consumers and K-Electric users.  

    In October, NEPRA had previously approved a separate increase of Rs1.71 per unit in the electricity tariff, which was attributed to fuel adjustment charges (FAC) for the month of August. This increase was reflected in the bills for October. 

    Additionally, on October 3rd, NEPRA sanctioned a per-unit price increase of Rs 3.28 as part of the quarterly adjustment.  

    This adjustment will entail a recovery of Rs3.28 per kilowatt-hour (kWh) from various consumer categories within power distribution companies (DISCOs) and K-Electric over a six-month period, spanning from October 2023 to March 2024. 

  • Power company in Punjab wants to set power price at record-breaking high of Rs77.3 per unit

    Power company in Punjab wants to set power price at record-breaking high of Rs77.3 per unit

    In a noteworthy development that has captured significant attention and ignited considerable debate, the Kot Addu Power Company (KAPCO) has formally submitted an application to the National Electric Power Regulatory Authority (NEPRA) for the endorsement of what could potentially become the nation’s most costly electricity generation tariff. 

    This significant step has unfolded against the backdrop of ongoing deliberations concerning the escalating expenses associated with electricity production within Pakistan. 

    The Kot Addu Power Company has put forth a bold proposition, aiming to establish the electricity tariff at an unprecedented Rs77.31 per unit, attributing the primary rationale for this request to substantial hikes in production costs. 

    Notably, the present initial tariff offered by the independent power producer (IPP) company stands at a modest twenty-eight rupees per unit, underscoring the magnitude of the escalation should their proposal garner approval. 

    Adding a layer of complexity to this unfolding narrative, IPP Kot Addu Power, the entity responsible for electricity generation, has been granted a sixteen-month extension during the tenure of the Pakistan Tehreek-e-Insaf (PTI) administration.  

    However, this extension has not been without its share of controversy, with the Senate Power Committee recently deeming it unlawful, further intensifying the discourse surrounding this matter. 

  • Govt not reducing solar net metering rate of Rs19 

    Govt not reducing solar net metering rate of Rs19 

    In an official statement, Muhammad Ali, the Caretaker Minister for Energy and Petroleum, has provided clarity on the government’s stance regarding incentives for solar net metering. Addressing recent speculation in the media and on social platforms, he affirmed that the government has no intentions of reducing the incentives associated with solar net metering, particularly the rate of Rs19.  

     “There were talks of a change in the rate of solar net metering in media and social media that the government is reducing the net metering rate from Rs19. I want to clarify and ensure that we are not taking any such measure,” he said. 

    Furthermore, Ali announced the government’s upcoming initiative to introduce a special incremental tariff for industrial electricity users before October 31. This endeavor is aimed at ensuring affordable electricity for industrial sectors, thereby relieving some of the financial burden on energy consumers. 

    In its ongoing efforts to support energy consumers during the winter season, the government is actively working on devising a special tariff designed to mitigate expenses for this specific period. 

    Ali also disclosed the government’s rigorous measures to combat electricity theft, which includes a nationwide crackdown on the illegal activity. He reported that individuals implicated in electricity theft within distribution and other utility companies have been reassigned, and comprehensive actions are being taken against them. Additionally, a crackdown against gas theft has been initiated to curb such practices. 

    Previously, reports had suggested that the government was contemplating the issuance of an ordinance to further regulate net metering. This decision was prompted by concerns that the installation of solar panels on rooftops had inadvertently increased capacity payments to Independent Power Producers (IPPs). Notably, the proposed ordinance is expected to include provisions criminalizing non-payment of electricity bills, as reported by Geo News. 

  • NEPRA approves Rs5.40 per unit power tariff increase for quarterly adjustment

    NEPRA approves Rs5.40 per unit power tariff increase for quarterly adjustment

    The National Electric Power Regulatory Authority (NEPRA) has given its approval for a quarterly adjustment, resulting in an increase of Rs5.40 per unit in the power tariff.

    This adjustment comes as NEPRA recognises the limitations of the current structure of electricity distribution companies in providing relief to consumers. However, it’s important to note that this revised tariff won’t apply to Lifeline and K-Electric consumers.

    According to Samaa, NEPRA’s decision to revise the tariff comes after a thorough review of requests from distribution companies to raise the tariff by Rs5 per unit for the fourth quarter of the fiscal year 2022–23. Among these requests, FESCO, GEPCO, HESCO, and IESCO sought increases of Rs23.49 billion, Rs16.13 billion, Rs9 billion, and Rs9 billion, respectively.

    Additionally, LESCO requested a substantial increment exceeding Rs31 billion, while MEPCO, PESCO, QESCO, SEPCO, and TESCO collectively proposed tariff hikes totaling Rs27 billion, Rs9 billion, Rs7 billion, Rs5 billion, and Rs4 billion.

    Consumers should be aware that this tariff adjustment will be gradually recovered during September, October, and November, resulting in an added financial burden of Rs5.40 per unit.

    Distribution companies, in their submissions, highlighted revenue challenges stemming from decreased industrial demand. Particularly, LESCO faced a deficit of three billion units of electricity due to climate-related issues and industrial shutdowns. Both LESCO and HESCO faced higher capacity charges due to industry closures and reduced demand.

    Presently, there’s a backlog of approximately 350,000 pending connections with distribution companies. To recover revenue and address declining demand, the Central Power Purchasing Agency imposed surcharges amounting to Rs7.91.