Consumers to Face Rs4.66 Per Unit Hike in Electricity Bills
Staff Report
Electricity consumers are facing a potential price hike of Rs 4.66 per unit in their electricity bills in January 2024 due to fuel adjustments from November.
This increase could add Rs 33 billion to consumers’ expenses. The National Electric Power Regulatory Authority (Nepra) held a hearing where it faced criticism for allegedly succumbing to pressure from the power division, leading to higher consumer prices.
The Central Power Purchasing Agency (CPPA-G) noted that consumers are already paying Rs 3.08 per unit for fuel adjustment, meaning the actual impact would be an additional Rs 1.58 per unit.
Questions were raised about CPPA-G’s decision to operate power plants on imported fuel while cheaper plants were shut down for maintenance. The closure of a Thar coal-based plant for maintenance was specifically noted as a factor in higher prices.
Electricity consumption saw a 13% decline, contributing to the price increase. Plants operated on expensive imported LNG fuel in November 2023, leading to these higher costs for consumers.
CPPA-G also requested to pass on previous adjustments of Rs 15.9 billion to consumers in their January 2024 bills.
Nepra responded to overbilling concerns by assuring enforcement of its decisions and taking legal action against power distribution companies (Discos) if necessary.
CPPA, at the behest of DISCOs, applied to Nepra for a price increase under the Fuel Cost Adjustment (FCA) for November 2023. Check IESCO Bill Online| Download IESCO Duplicate Bill April 2023
CPPA’s application revealed that November’s total electricity generation was 7,547 GWh at Rs7.1704 per unit, costing Rs54,113 million.
The generation mix included hydel, coal (both local and imported), gas, RLNG, bagasse, wind, solar, nuclear, and imported electricity from Iran. The net electricity delivered to DISCOs was 7,288GWh at Rs9.4448 per unit, totaling Rs68,834 million.
