Power Consumers to Pay Rs 3.39 per unit increase in electricity bills

The National Electric Power Regulatory Authority (Nepra) has indicated raising electricity prices by Rs 3.39 per unit due to quarterly changes, amidst ongoing protests against inflated energy bills.

Now, consumers will be paying another increase in electricity bills in the upcoming months.

The further hike in electricity rates will put a Rs 94 billion burden on power consumers who were already complaining about their inflated bills.

Previous administrations’ flawed agreements with independent power producers (IPPs) and the inefficiency and power theft of power distribution corporations led to the spike in electricity bills.

Governments have been hiring the heads of power distribution corporations on a purely political basis, resulting in malpractices and corruption that have led to the collapse of Pakistan’s energy sector, mired in trillion-rupee circular debt.

Reason for increase in electricity bills

The most significant concern, however, was the increase in base electricity costs, which had risen from Rs 16 per unit to Rs 24 per unit.

In addition to high electricity prices, users also had to pay additional taxes and levies.

The latest hike in electricity costs will result in a further rise in customer bills.

Power regulator held a public hearing to consider Fourth Quarter Adjustment of Discos for Financial Year 2021-22.

Engineer Taseef H. Farooqui presided over the public hearing as Chairman of Nepra.

Engineers Rafiq Ahmed Sheikh and Maqsid Anwar Khan, both members of Nepra, were also in attendance.

As part of the fourth quarter adjustment, discos had requested a hike of Rs 3.39 per unit, according to Nepra.

Nepra stated that consumers are currently being charged Rs 3.21 per unit for the prior quarterly changes, which would continue until September and then end.

The power regulator added that consumers will pay 18 paia per unit higher for fourth-quarter adjustments than for prior quarterly adjustments.

Nepra stated that it will likewise be valid for three months.

Except for Lifeline members, this will be applicable to all DISCOS clients.

Nepra stated that the authority will announce a decision after conducting additional analysis of the data.

The EX-Wapda Discos have also requested NEPRA’s clearance for the transfer of Rs 94.399bn in quarterly adjustments to power users for the fourth quarter of 2021-22.

In its petition to NEPRA, XWDiscos had requested an increase of approximately Rs 3.1 per unit for capacity charges, transmission charges& market operation fee, the impact of T&D losses on FCA, and variable operation & maintenance charges for the fourth quarter of the fiscal year 2021-22 (April to June 2022), as well as the impact of additional recovery on increment sales.

In addition, XWDiscos demanded Rs 54.663 billion for Capacity Charges, Rs 14.163 billion for UOSC & MOF, and Rs 35 billion for T&D losses.

IESCO has requested Rs 8.729 billion, LESCO Rs 17.816 billion, GEPCO Rs 9.257 billion, FESCO Rs 11.624 billion, MEPCO Rs 19.534 billion, PESCO Rs 12.274 billion, HESCO Rs 5.298 billion, QESCO Rs 3.163 billion, SEPCO Rs 2.995 billion, and TESCO Rs 3.708 billion in their petitions.

Electricity bills in October 2022: Consumers to face Rs 4.34 increase