Electricity Bills May 2022: Consumers to Pay Rs 2.87 Per Unit Increase

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Consumers across the country are set to witness a rise in their bills in May 2022 by Rs 2.87 per unit due to an increase in fuel prices.

The power regulator had approved an increase in electricity prices by Rs 2.87 per unit.

In its petition, the Central Power Purchasing Agency Guarantee Limited (CPPA-G) had sought an increase of Rs3.1573 per unit on account of FCA for March, having a cumulative impact of over Rs32 billion.

Nepra conducted the hearing on the petition and had reserved its ruling.

The power regulator has approved an Rs.2.8680/kWh increase in electricity rates on account of fuel adjustment to burden the consumers with around Rs.29 billion.

The increase in tariff of March 2022 shall be charged in the billing month of May 2022 to all consumer categories of XWDISCOs, except lifeline consumers.

The power tariff hike would remain applicable only for one month and would not be applicable to KE consumers.
In a petition submitted to NEPRA, on behalf XWDISOCs, the CPPA-G said the reference fuel cost stood at Rs 6.2295 per unit. However, the actual fuel cost went up to Rs 9.3869/unit.

Therefore, CPPA had requested an increase of Rs 3.1574 per unit to recover from the power consumers.

Increase in K-Electric bills

The power regulator had also announced a decision regarding tariff increase for KE consumers on account of fuel adjustment for the month of February 2022.

In its decision, the power regulator said that KE management had requested an increase of Rs. 3.452 per unit on account of fuel adjustment for the month of February to burden the consumers with Rs. 3,950 million.
The power regulator conducted a public hearing on April 04, 2022.

However, the regulator had approved a power tariff hike of Rs. 1.3863 per unit on account of fuel adjustment for the month of February 2022 with an accumulative financial impact of Rs. 1,586 million.

The regulator had allowed KE to recover a hike in tariff from the consumers in monthly bills of May 2022.

The increase will be applicable to all the consumer categories except lifeline consumers.

NEPRA had conducted a public hearing on KE’s petition and reserved the judgment.

The power companies had sought a hike in electricity rates on account of fuel adjustment in March.

Nepra had allowed a reference price of fuel for the month of March.

However, the actual cost of electricity went up due to price shocks in the global market following the Ukraine war.

The local prices of fuel are also linked with the prices of energy in the global market.

In addition, Pakistan is a net importer of oil, coal and petroleum products.

Even, it is now importing gas from Qatar to meet the local demand.

The country is also dependent on imported gas which Pakistan LNG Limited imports on spot.

Spot purchases have also been skyrocketing, impacting the prices of electricity in Pakistan.

The increase in prices of electricity will reflect in the bills for May 2022.

Increase in electricity bills

The Nepra also conducted a hearing regarding the increase in tariff for other power distribution companies on fuel adjustment.

Power regulator indicated that power consumers would be charged less tariff by 1.98 per unit for Mach fuel adjustment compared to February fuel adjustment.

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Power consumers had paid Rs 4.85 per unit on account of fuel adjustment for the month of February.

Now, the regulator approved an increase in tariff by Rs 2.87 per unit on account of fuel adjustment for the month of March 2022. The increase will be charged in electricity bills for May 2022.

CPPA-G had requested an increase of Rs 3.16 per unit on account of fuel adjustment for the month of March 2022.

The Nepra reserved its judgment and will issue a decision later.