Massive Increase in Electricity Prices witnessed in Pakistan by Rs 7.9 Per Unit

News Report

Islamabad: Average electricity rates in Pakistan are going up by Rs 7.9078 per unit on account of mainly increase in Fuel Prices, capacity cost and the impact of PKR devaluation.

The tariff has been determined for the FY 2022-23, which on the National Average is Rs.24.82/kWh, higher by Rs.7.9078/kWh than the earlier determined national average tariff of Rs. 16.91/kWh

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

The determined tariffs have been intimated to the Federal Government. The Federal Government as per NEPRA Act is required to file an application for the determination of a uniform tariff for all the DISCOs.

The uniform tariff so determined by NEPRA after incorporating the amount of subsidy/ surcharges, intimated by the GoP, is forwarded to the GoP for notification.

The tariff once notified is then charged to the consumers.

MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO filed Multi-year tariff petitions for the FY 2020-21 to FY 2024-25.

IESCO, LESCO & FESCO filed annual adjustment/indexation requests under the already allowed multi-year tariff.

The increase of Rs.7.9078/kWh is mainly due to an increase in Fuel Prices, capacity cost and the impact of PKR devaluation.

Energy Purchase Price is projected as Rs.1,152 billion.

Capacity charges including NTDC and HVDC costs are projected as Rs.1,366 billion.

The total Revenue requirement of XWDISCOs including DISCOs margin and Prior Year Adjustment (PYA) is projected as Rs.2,805 billion with projected sales of 113,001 GWh.

MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO have been allowed an investment of around Rs.406 billion for their distribution investment program for the 5 year period.

XWDISCOs allowed T&D losses have been reduced from 13.46% to 11.70% for the FY 2022-23.