ISLAMABAD:  National Electric Power Regulatory Authority (NEPRA) has announced yet another increase in electricity prices, further burdening already struggling consumers.

The hike of Rs7.5 per unit in electricity rates has been approved as part of the fuel price adjustment (FCA) for January 2024, with the additional cost to be reflected in consumers’ bills during March 2024.

This increase, approved under the FCA, applies to all consumer categories except lifeline consumers and those served by K-Electric (KE). It is estimated that this hike will impose an additional burden of Rs66 billion on consumers already grappling with high costs.

Earlier reports had hinted at a potential tariff increase, with the Central Power Purchasing Agency (CPPA) urging NEPRA to raise rates by Rs7.13 per unit due to fuel price adjustments.

The CPPA’s petition highlighted that in January 2024, a significant portion of power generation came from various sources including hydropower, coal-fired plants, natural gas, and nuclear plants.

This recent hike follows a previous increase in electricity tariffs, when NEPRA raised rates by Rs5.63 per unit for December 2023 under the monthly fuel adjustment (MFA). This decision was made after NEPRA reviewed a petition from the CPPA requesting the tariff hike.