The cost of electricity has gone up by Rs 7.5 per unit.
NEPRA approves a staggering Rs7.5 per unit increase in electricity prices due to fuel price adjustments, adding further strain to consumers. Read about the implications and background of this decision.
Consumers Brace for Increased Electricity Prices as NEPRA Approves Rs7.5 per Unit Hike
In yet another blow to electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has sanctioned a significant hike of Rs7.5 per unit in electricity prices, attributing it to fuel price adjustments (FCA).
As per NEPRA's announcement, the regulatory body has endorsed an escalation of Rs7.5 per kilowatt-hour (kWh) in electricity rates under the fuel price adjustment mechanism for January 2024. This adjustment is slated to impact consumers' bills from March 2024 onward.
The increment will be applied across all consumer categories, excluding lifeline consumers and those serviced by K-Electric (KE). This surge in electricity tariffs is expected to impose an additional burden of Rs66 billion on already financially strained consumers.
Earlier speculations regarding a potential tariff increase were substantiated when the Central Power Purchasing Agency (CPPA) lodged a request with NEPRA to raise electricity rates by Rs7.13/unit, citing fuel price adjustments.
In its petition to NEPRA, CPPA highlighted that in January, hydropower plants contributed 11.12 percent to total power generation, coal-fired plants accounted for 16.51 percent, natural gas plants contributed 12.45 percent, and nuclear plants contributed 20.78 percent. This data formed the basis for the requested tariff adjustment.
NEPRA's decision comes in the wake of a previous tariff increase of Rs5.63 per unit in December 2023, enacted under the monthly fuel adjustment (MFA) mechanism.
The approval followed NEPRA's completion of hearings regarding CPPA's petition, signaling a continued trend of rising electricity costs for consumers.
