ISLAMABAD
Moving at a record speed, the National Electric Power Regulatory Authority (Nepra) on Thursday rubber-stamped all the government demands for an increase of up to 51 per cent in the national electricity base rates and up to 184pc in fixed capacity charges, with changes effective retrospectively from July 1, 2024.
The authority “has no objection in approving the motion along with the subsequent addendum of the federal government”, the power regulator said in the final order issued less than 24 hours after a public hearing on the issue. The new rates will be applicable across the country, including Karachi.
Similarly, the government’s request to apply fixed charges at 25pc of the sanctioned load or actual Maximum Demand Indicator (MDI) value for the month, whichever is higher, has also been approved, Nepra said.
In view of the requirements for the upcoming IMF programme, the regulator asked the power division to ensure notification of the approved tariff and revenue schedule of all the distribution companies (Discos).
The order said the total revenue requirement for the current fiscal year for Discos (excluding K-Electric) has increased to Rs3.768 trillion, resulting in an increase of Rs5.72 per unit (kilowatt-hour or kWh) in the average base tariff.
However, following public outcry, the federal cabinet moved an addendum. Under this addendum, instead of Rs5.72 per unit, “an (average) increase of Rs3.29 per unit is being passed on to the consumers from July to September 2024, and Rs4.55 per unit thereafter until June 2025”, particularly to provide some relief to residential consumers using up to 200 units.
Despite the tariff hike, the federal government would be picking up a tariff differential subsidy of around Rs490 billion, including Rs177bn for K-Electric and Rs313bn for the rest of the consumers across the country.
Overall, the average residential tariff has gone up by Rs3.63 per unit or 14pc for July to September and 24pc (Rs6.27per unit) for the remaining nine months.
