Consumers to Face Rs 3.41 Per Unit Increase in Electricity Rates

Staff Report
Consumers are set to face another increase in electricity rates, up to Rs 3.41 per unit.

The National Electric Power Regulatory Authority (Nepra) conducted a public hearing to consider this increase in electricity rates, attributed to fuel adjustment for May 2024.

It was informed during the public hearing that this increase would burden power consumers with Rs 41 billion in the upcoming month’s bills. The actual fuel rate stood at Rs 9.12 per unit, against a reference price of Rs 5.7 per unit, resulting in an increase of Rs 3.41 per unit.Electricity Rates to Surge by Up to Rs 5.7 per Unit in 2024-25

During the hearing, it was reported that electricity consumption had dropped by 5 percent due to weather conditions. CPPA-G officials informed that total demand had been only 17,000 MW during May 2024. They further mentioned that more electricity was produced using LNG rather than coal, with the cost of electricity through RLNG-based fuel at Rs 24.7 per unit.

Officials explained that they had to forecast LNG demand months in advance, but sometimes, LNG consumption in the power sector dropped, causing an increase in line pack for gas utilities.

It was also noted that the share of net metering in the total energy mix was less than 1 percent. Intervenors claimed that the power division had propagated against net metering, although its share was less than one percent. They further stated that those using net metering consumed more electricity from the national grid at night, labeling the opposition to net metering as mere propaganda.

Role of Nepra in Electricity Prices

During the hearing, intervenors raised questions about the power regulator’s role in providing relief over the last five years. Nepra was criticized for depriving consumers of the option to pay bills in installments, but Nepra did not respond to these questions.

CPPA-G officials were also questioned about the coal scam at the Sahiwal coal power plant and how many cases they had lost in international courts. Additionally, there were questions about the mounting circular debt in the power sector. However, CPPA-G officials refused to respond, asking intervenors to submit their questions in writing as these queries were not relevant to the public hearing.

The power regulator had called for producing electricity through coal to overcome load shedding in May. A Nepra member mentioned that consumers on feeders with less than 10 percent losses were also facing load shedding. Consumers expressed that electricity prices were so high they were beyond affordability.

Nepra has reserved its decision and will announce it after scrutinizing the data.