Nepra indicates Electricity Rates’ Hike up to Rs 2.31 per unit

Consumers are going to face a hike in electricity rates in August 2023 up to Rs 2.31 per unit on account of fuel adjustment.

National Electric Power Regulatory Authority (Nepra) on Wednesday indicated to increase power tariff by Rs 2.31 per unit for K-Electric Consumers on account of fuel adjustment for the month of June 2023.

The power regulator also hinted at raising the power tariff by Rs 1.81 per unit for consumers of other power distribution companies (Discos) on account of fuel adjustment for June.  

NEPRA’s decision will result in an additional burden of Rs 4.30 billion on the consumers in Karachi, raising concerns among the already burdened public grappling with inflation and economic challenges. Check KE Duplicate Bill |K-Electric Duplicate Bill 2023

The increased electricity prices will take effect in August, impacting the monthly bills of consumers in the city.

The power regulator conducted separate hearings for KE and Disco’s consumers here.

While announcing the fuel price adjustment, NEPRA clarified that the increase would not apply to K-Electric’s Lifeline customers and Electric Vehicle Charging Stations. The detailed judgment regarding the FCA for June will be issued by NEPRA after a thorough scrutiny of the relevant data.

According to NEPRA officials, the increase in electricity prices is attributed to the higher fuel cost in the month of June 2023.

K-Electric generated electricity at Rs 24.90 paise per unit from its own resources, while the cost of electricity received from the federal government was Rs 11.56 paise per unit during the same period.

K-Electric had initially requested an increase of Rs 2.34 paisa per unit under the FCA. However, after data analysis, NEPRA announced an adjustment of Rs 2.31 per unit for the fuel price adjustment in June. This increase in power tariff under the FCA for June 2023 will be applicable for one month only.

In the case of Disco’s consumers, the power regulator indicated an increase of Rs 1.81 per unit on account of fuel adjustment for June.

Nepra in a statement said that CPPA-G had submitted a request for an increase of Rs 1.88 per unit under FCA.

According to the preliminary analysis of Nepra’s data, there is an increase of Rs.1 81 per unit under FCA, Nepra said.

Earlier, consumers were charged Rs 1.90 per unit under FCA during the month of May 2023.

Consumers will be charged 9 paise per unit less on account of fuel adjustment for June than May, Nepra said.

This will be applicable to all customers of DISCOs except Lifeline and electric vehicle charging stations, Nepra said adding that it will also not apply to electric charging stations consumers.

The authority will issue its detailed decision after further scrutiny of the data, Nepra said