Islamabad: The National Electric Power Regulatory Authority (Nepra) has announced a new electricity tariff structure effective from July 1, 2024, introducing fixed charges ranging from Rs 200 to Rs 1,000 per month for residential consumers, based on their monthly electricity consumption.
The new tariff plan categorizes domestic consumers into five groups:
- Consumers using 301-400 units per month will be charged Rs 200.
- Those consuming 401-500 units will pay Rs 400.
- Consumers using 501-600 units will face a Rs 600 charge.
- For consumption between 601-700 units, the charge is set at Rs 800.
- Users exceeding 700 units will incur a fixed charge of Rs 1,000.
- Residential consumers with Time of Use (ToU) meters will also pay Rs 1,000.
Commercial and industrial users will see even steeper increases. Commercial consumers with a load less than 5kW will pay Rs1,000 monthly, while those with 5kW and above will see their charges increase from Rs500 to Rs2,000, marking a 300% hike.
Industrial consumers are categorized into B1, B2, B3, and B4, with corresponding increases:
- B1 category (up to 25kW) will pay Rs 1,000.
- B2 category (up to 500kW) will pay Rs2,000, up from Rs 500.
- B3 category (up to 5,000kW) will see an increase from Rs 460 to Rs 2,000.
- B4 category, covering all loads, will now pay Rs 2,000, an increase from Rs 440.
Currently, 72% of the total electricity unit cost comprises fixed charges, while 28% are variable. Despite this, revenue from fixed charges is only 2%, with variable charges accounting for 98%. Nepra’s new tariff aims to address this mismatch between cost and revenue structure.
In addition, the government plans to submit a petition to Nepra, seeking a uniform tariff for FY25. Nepra has determined an increase in the base tariff for FY25 to Rs5.72 per unit, raising the base tariff from Rs29.78 to Rs35.50 per unit. This adjustment is expected to generate over Rs3.763 trillion in revenue for the power sector in FY25.
NEPRA officials stated that the final decision on the base tariff will be made upon the federal government’s request. All fixed charges are part of the base tariff and not separate from it. This new move is part of a broader attempt to increase revenue generation for distribution companies.
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