Electricity tariff set to rise nationwide

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has been advised to increase electricity power tariff across the country, ARY News reported.

According to details, preparations are underway to increase electricity prices across the country, including Karachi, as part of the quarterly adjustment. This hike is expected to place an additional burden of Rs. 8.73 billion on consumers already facing high utility costs.

A request has been submitted to NEPRA seeking to impose an additional burden of Rs. 8.72 billion on electricity consumers. This adjustment pertains to the first quarter of the current fiscal year and aims to address rising energy costs. NEPRA will hold a hearing on 20 Nov regarding this proposal.

This increase, includes Rs. 8.06 billion for capacity charges, Rs. 1.25 billion for operations and maintenance, and Rs. 1.65 billion for system charges and market operations fees.

Currently, consumers nationwide, including Karachi, are paying Rs 1.74 per unit under the previous quarterly adjustment, which will conclude this month.

Previously, the NEPRA approved K-Electric’s plea for an adjustment of Rs. 2.17 per unit for the month of November.

The increase was in addition to the existing price of Rs. 3.17 per unit, making the total price Rs. 4.91 per unit. KE has also announced a quarterly adjustment of Rs. 1.74 per unit, which will be charged separately.

This adjustment is part of the quarterly tariff adjustment mechanism, which aims to pass on the fuel price variation to consumers.

It is worth noting that KE had previously announced an increase of Rs. 2.59 per unit for October, which was a major burden on consumers. The company has also requested an increase of Rs. 51 paise per unit for August, which is still pending approval.

Last month, NEPRA issued its decision on K-Electric’s (KE) petition of provisional monthly fuel charge adjustments (FCA) for July 2024, at PKR 3.03 per unit. The amount will reflect in customer bills in the month of December 2024.

“Fuel charge adjustments incurred by utilities due to global variations in fuel prices used to generate electricity, and the changes in generation mix. These costs reflected in customer bills following NEPRA’s scrutiny and approval. Customers also benefit from reduced FCA in their bills when global fuel prices decrease. Rates charged to customer bills determined by NEPRA and notified by the Federal Government.”