Tag: electricity tariff hike

  • NEPRA approves Rs1.75 per unit tariff hike to recover Rs40 billion

    NEPRA approves Rs1.75 per unit tariff hike to recover Rs40 billion

    The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs1.75 per unit in the electricity tariffs for distribution companies (Discos) and K-Electric (KE).

    This increase, aimed at recovering an additional Rs40 billion, will apply to the fourth quarter of FY2023-24 (April-June) under the Quarterly Tariff Adjustment (QTA) mechanism.

    The additional charges will be reflected in consumers’ electricity bills for September, October, and November 2024.

    However, due to the termination of a previous Rs0.93 per unit adjustment for the third quarter (January-March 2023-24), the net increase in bills during this period will effectively be Rs0.82 per unit.

    For KE customers, the federal government will cover the QTA increase through subsidies allocated for FY2024-25, meaning KE consumers will not directly bear this cost.

    In addition, NEPRA has approved a negative adjustment of Rs0.37 per unit under the Fuel Cost Adjustment (FCA) for Discos for the month of July 2024. This reduction will appear in September 2024 bills, except for domestic consumers using up to 300 units per month.

    According to Business Recorder, since an existing FCA charge of Rs2.56 per unit, applied in August 2024 bills, is set to expire, a combined relief of Rs2.93 per unit will be passed on to consumers in their September 2024 bills.

    According to NEPRA, when both adjustments are taken into account, consumers will experience a total relief of Rs2.11 per unit in their September bills.

  • NEPRA hikes basic electricity tariff by Rs5.72 to Rs35.50 per unit

    NEPRA hikes basic electricity tariff by Rs5.72 to Rs35.50 per unit

    The National Electric Power Regulatory Authority (NEPRA) has announced an increase in the basic electricity tariff by Rs5.72 per unit, effective from July 1, 2024. This hike will raise the current base tariff from Rs29.78 to Rs35.50 per unit.

    The capacity charges, which form a significant portion of the base price, amount to Rs18.10 per unit, constituting 51 per cent of the total cost. Consequently, the total capacity payment is projected to reach approximately Rs2.091 trillion for the fiscal year 2025.

    This proposal has been submitted to the federal government for final approval. The government will decide whether to implement the increase immediately or phase it in over time.

    It is important to note that in the current fiscal year (FY24), the electricity tariff was increased by Rs7.50 per unit, while in the previous fiscal year (FY23), the government implemented an increase of Rs7.91 per unit.

    In a contrasting move, Prime Minister Shehbaz Sharif announced on Friday a substantial reduction of Rs10.69 per unit in the electricity tariff for the industrial sector. This reduction is part of the Prime Minister’s historic power package aimed at bolstering the country’s industrial sector.

    Additionally, the petrol price has been reduced for the fourth consecutive time, decreasing by Rs10.20 to Rs258.16 per litre.

  • NEPRA announces tariff hike of Rs3.33 per unit for ex-Wapda distribution companies

    NEPRA announces tariff hike of Rs3.33 per unit for ex-Wapda distribution companies

    The National Electric Power Regulatory Authority (NEPRA) has sanctioned an increase of Rs3.3321 per kilowatt-hour (kWh) in the electricity tariff for ex-Wapda distribution companies (XWDISCOs), according to a notification issued on Thursday.

    This tariff adjustment is attributed to fluctuations in fuel charges for April 2024. The increased rate will be itemised separately on consumers’ bills based on the units consumed during that month.

    NEPRA clarified that the revised tariff will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

    Previously, the Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, had requested an additional Rs3.49 per unit to cover the higher fuel costs for April 2024.

    The CPPA-G reported that the actual pooled fuel cost for April 2024 was Rs8.9801/kWh, significantly higher than the reference fuel cost of Rs5.4918/kWh, resulting in a difference of Rs3.4883/kWh.

    “After incorporating the aforementioned adjustments, NEPRA reviewed and assessed a national average uniform increase of Rs3.3321/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for April 2024,” the notification stated.

    Consumers can expect to see this adjustment reflected in their upcoming bills as NEPRA continues to address the variations in fuel costs impacting the electricity sector.

  • Govt gives nod to massive power tariff hike to meet IMF demands

    Govt gives nod to massive power tariff hike to meet IMF demands

    In a recent late-night development, the federal cabinet of Pakistan has given its approval for a significant increase in the electricity base tariff. This decision comes as part of the country’s efforts to meet the conditions set by the International Monetary Fund (IMF).

    According to the information provided by insiders, the federal government has decided to raise the basic power tariff for various consumer categories, with the increase ranging from Rs3 to Rs7.5 per unit.

    The National Electric Power Regulatory Authority (Nepra) played a pivotal role in this decision, as the cabinet approved the tariff hike based on Nepra’s recommendation.

    For non-protected residential consumers who use 1 to 100 units, the proposed increase is Rs3 per unit, which will elevate the current cost from Rs13.48 per unit to Rs16.48 per unit.

    Similarly, residential consumers using above 700 units might see a significant increase of Rs7.5 per unit, raising the existing rate from Rs35.22 per unit to Rs42.72 per unit.

    The government has now referred the matter to Nepra, which will conduct a public hearing to gather input and make a final decision before releasing an official notification. If approved, the new tariff will take effect from July 1.

    It is noteworthy that Nepra had already granted the federal government an increase of Rs4.96 per unit in the base electricity tariff on July 14.

    This move aligns with Prime Minister Shehbaz Sharif’s commitment to IMF Managing Director Kristalina Georgieva, assuring full adherence to the agreement made with the global lender, leaving no room for any violation.