Consumers to Face Rs0.34 per unit hike in Electricity Bills May 2023 

The consumers should be ready to face Rs 0.34 per unit increase in electricity bills May 2023.

The National Electric Power Regulatory Authority (Nepra) has indicated to increase power tariff by Rs 0.34 per unit for consumers of power distribution companies (Discos) on account of fuel adjustment for March 2023.

The increase in electricity rates will reflect in electricity bills May 2023. 

The power regulator conducted separate public hearings to consider proposed increases in electricity rates sought by KE and other Discos on account of fuel adjustment.

The hearing was presided over by Mr. Engineer Taseef H. Farooqui, Chairman of NEPRA.

According to NEPRA, CPPAG had submitted a request for an increase of Rs 1.17 per unit under fuel cost adjustment (FCA).

However, after a preliminary check of NEPRA’s data, the increase in FCA amounts to Rs 0. 34 per unit, which will be applicable to all customers of DISCOs except Lifeline and electric vehicle charging stations.

It will burden the Discos consumers with an additional burden of Rs 2.9. Lifeline consumes have been exempted from hike.

It will not apply to K- electric consumers, Nepra said, adding that it will issue a detailed decision after further scrutiny of the data.

 During the hearing, it was informed that electricity consumers will have to make additional payments in May bills due to the increase in fuel charges. 

Power demand in March was 23% lower than last year, and LNG supply was provided higher than demand, according to NPCC officials. 

However, due to the inability to transmit electricity from Shanghai Electric, production from coal decreased, officials said. 

Chairman Nepra observed that less take off means less power consumption. 

CPPA officials stated that power generation fell by 8 percent in March.

Additionally, NEPRA was requested to allow collecting arrears of Rs 8.76 billion from customers in March.

 Some members of NEPRA discussed loadshedding and the burden being imposed on electricity consumers. 

Member Nepra Rafiq Shaikh questioned why load shedding was not abolished despite the decrease in power demand.

He said that the burden is being passed on to electricity consumers due to a governance issue. 

NEPRA officials observed that consumers had faced a burden of Rs1.73 billion due to the violation of merit order.