Islamabad: The National Electric Power Regulatory Authority (Nepra) has announced an increase in electricity tariffs by Rs 2.56 per unit, a move that will result in an additional collection of over Rs 33 billion from consumers in August. The hike, revealed on Thursday, comes as part of the monthly fuel cost adjustment (FCA) for June.
This increase will be reflected in the electricity bills of consumers in August, although lifeline consumers and K-Electric users will be exempt from this hike. The adjustment marks the second consecutive rise in tariffs, following a Rs 3.33 per unit increase for May’s fuel adjustment, which was collected in July. In total, NEPRA permitted ex-Wapda distribution companies (Discos) to collect an additional Rs 41 billion from consumers in July.
The Central Power Purchasing Agency (CPPA), which procures electricity from power plants on behalf of distribution companies, had initially requested a Rs 2.63 per unit increase. However, Nepra approved a slightly lower rate of Rs 2.56 per unit during a hearing on July 31.
A recent Nepra inquiry report highlighted that millions of users across the country were hit with inflated bills during the April-June period, particularly affecting lifeline consumers and those in the protected category. These consumers, who typically use between 51-200 units per month, were pushed out of their monthly ceiling, resulting in higher rates than their actual consumption warranted.
In response to growing criticism over capacity payments to independent power producers (IPPs), the government has established a task force to investigate financial and operational issues in the power sector. Prime Minister Shehbaz Sharif appointed former caretaker energy minister Muhammad Ali as a special assistant on energy and co-chairman of the task force. The task force is expected to review shortcomings in the electricity sector and IPP capacity payment issues within 30 days.
Meanwhile, domestic industries have passed on the increased electricity costs to consumers through higher retail prices, and exporters have warned that rising energy costs could impact their ability to accept international orders.
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