NEPRA approves Rs5.2bn additional burden with fuel cost and increase of Rs 4.56 in electricity prices

 

NEPRA approves Rs5.2bn additional burden with fuel cost and  increase of Rs 4.56 in electricity prices

Islamabad: According to the most recent information, the Federal Government has requested that the National Electric Power Regulatory Authority (NEPRA) increase energy rates by Rs. 3.28 per unit. The increase will take effect in October 2023 and run through March 2024. Within the framework of the Quarterly Tariff Adjustment (QTA) process, the rate of electricity has been increased. This boost is allegedly intended to alleviate additional financial problems brought on by rising interest rates and economic hardship. As a result, electricity users will bear an extra cost of more than Rs. 140 billion.

With the exception of lifeline consumers, all consumer categories of distribution businesses will be required to pay the December 2021 bill that the FCA will receive, according to the notification.

It had further stated, "The concerned XWDISCOs shall keep in mind and strictly comply with the court orders notwithstanding this order" while implementing the fuel adjustment charges.

Prior to that, Nepra had given K-Electric permission to charge city residents Rs3.75 per unit as FCA for the month of September.

Following the change, Karachi's power users will see an increase in their electricity rates of Rs7.22 billion this December.

Nepra had permitted an increase in the electricity cost of up to Rs1.68 per unit last month in order to phase out power subsidies.

The first step in doing away with power subsidies was the increase in tariffs.

As the government works on the second and third phases of decreasing subsidies in the power sector, more increases are anticipated.

An additional Rs135 billion would be collected by the government each year as a result of the base tariff rise.

Nepra announced its decision to raise the energy cost by up to Rs1.68 for residential customers and Rs1.39 for commercial and industrial customers per unit. Customers who used up to 200 units per month were exempt from the hike.

The revised pricing was Rs13.83 per unit for those using up to 300 units, Rs21.23 per unit for users using 400–700 units, and Rs24.33 per unit for users using 700 units or more.

Written by ✍🏻 Mr. ABDUL REHMAN

📆 Feb 04, 2024