Nepra increases Power Tariff up to Rs 3.28 per unit
The consumers will be burdened with an additional Rs 135 billion for six months
Staff Report
National Electric Power Regulatory Authority (Nepra) has approved a raise in power tariff up to Rs 3.28 per unit on account of quarterly adjustments.
Following this fresh increase in electricity rates, the power consumers would be burdened with an additional Rs 135.5 billion burden.
The consumers were paying Rs 1.25 per unit on account of ongoing quarterly adjustments that will end in September this month.Nepra questions Dollar Indexation for solar power plants in Sindh
Out of the total increase, the new increase of Rs 1.25 per unit will continue whereas the Rs 2.03 per unit will be imposed as an additional increase for a six-month period.
The power regulator in a decision issued on Friday said that the Authority has determined a positive adjustment of Rs. 135,584 million on account of variation in Capacity charges, Variable O&M, additional recovery on Incremental sales, Use of System Charges, Market Operator Fee and FCA impact on T&D losses for the 4th quarter of FY 2022-23.
Ministry of Energy had filed a petition to raise the power tariff by Rs 5.40 per unit to be recovered from the consumers in a three-month period.
However, in order to avoid political backlash and protests from the consumers who had already received inflated bills, the Energy Ministry power division had requested the regulator to allow an increase of Rs 3.55 per unit to be recovered from the power consumers in a six-month period.
Keeping in view the request of the power division, the power regulator has allowed the positive quarterly adjustments of Rs.135,584 million pertaining to the 4th quarter of the FY 2022-23, to be recovered from the consumers of XWDISCOs in a period of 06 months i.e. October 2023 to March 2024.
Additionally, the power regulator said that the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through the incorporation of direct/indirect subsidies.
The Policy Guidelines issued by the Federal Government clearly stipulate that NEPRA shall determine the application of quarterly tariff determinations of XWDISCOs on K-Electric consumers by way of tariff rationalization and NEPRA shall determine the same tariff rationalization for K-Electric consumers as determined for XWDISCOs consumers, with same application period, keeping in view financial sustainability of the sector & uniform tariff policy of the Federal Government.
The Authority has decided to allow the application of quarterly adjustments as allowed for XWDISCOs, on the consumers of K-Electric, with the same applicability period, as of XWDISCOs.
Accordingly, a rate of Rs.3.2814/kWh shall be charged for the consumers of K-Electric, to be recovered in a period of 06 months i.e. October 2023 to March 2024.
Here it is pertinent to mention that no Quarterly adjustments would be passed on to Bl, B2, B3, and B4 industrial consumers to the extent of incremental sales till the continuation of the package, in line with the Authority’s decision dated 01.12.2020.
