Electricity Rates 2023-24: Nepra Hikes Tariff by Rs 4.96 Per unit

Staff Report

The government has hiked the average power tariff by Rs 4.96 per unit for the financial year 2023-24.

With the fresh increase, the power regulator has burdened the consumers with an additional burden of Rs.3, 281 billion during the ongoing financial year.

Following a recent decision, the average national tariff has gone up from Rs 24.82 per unit to Rs 29.78 per unit.How to check FESCO Bill Online

“The revised National Average tariff for the FY 2023-24 has been determined as Rs.29.78/kWh, which is Rs.4.96/kWh higher than the previously determined national average tariff of Rs. 24.82/kWh,” Nepra said in a statement.

When the present collation government came into power, it announced in July last year to raise the base power tariff from Rs 16.91 per unit to Rs 24.82 per unit.

It had announced to raise the basic electricity tariff by Rs3.50 per unit to Rs20.41 with immediate effect.

It increased the base tariff by Rs7.91 per unit to Rs24.82 per kWh later to recover an additional Rs893.83 billion from consumers during the fiscal 2022-23.

The present government had also imposed over Rs 3 per unit surcharge in addition to an increase in base electricity rates.

Now, the power regulator had made another increase of Rs Rs 4.96 per unit from Rs 24.82 per unit to Rs 29.78 per unit.

The power regulator in a statement said that the increase of Rs.4.96/kWh is mainly due to overall low sales growth, PKR devaluation, high inflation, exorbitant interest rates, and the addition of new capacities, etc.

Total Revenue requirement of XWDISCOs is projected as Rs.3,281 billion with projected sales of 110,165 GWh for the FY 2023-24,” the regulator added.

The power regulator added that any relief of a decrease in tariff will be directly transferred to the consumers in the future, in case of appreciation of PKR, decrease in inflation and interest rates, etc.

NEPRA determines different consumer-end Tariffs for each distribution company (XWDISCO), owing to their different revenue requirements and allowing different levels of T&D losses.

The determined tariffs are intimated to the Federal Government to file uniform tariff application.

The uniform tariff so determined by NEPRA after incorporating the amount of subsidy/ surcharges as intimated by the GOP, is notified by the GOP to be charged from the consumers.

MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO filed an Adjustment/indexation request under a Multi-year tariff regime for FY 2023-24.

IESCO, LESCO & FESCO filed Multi-Year Tariff petitions for FY 2023-24 to FY 2027-28 and also requested for Interim Tariff for FY 2023-24.

The Authority has accordingly, determined the consumer-end tariff for FY 2023-24,” the regulator said.