Nepra approves tariff increase of Rs2.75/unit for consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has sanctioned a tariff increase of Rs2.75 per unit for power consumers in the current quarter of the fiscal year 2023-24, placing an additional financial burden on them.

This latest tariff adjustment, totaling Rs85.2 billion for the second quarter of FY2023-24, will uniformly impact consumers with a charge of Rs2.75 per unit. The existing two quarterly adjustments, amounting to Rs4.43 per unit, will cease to apply from March 30, 2024, as stated by the power regulatory authority on Thursday.

Nepra has determined that the second quarterly adjustment will come into effect from April 2024 onwards, following the expiration of the current applicable adjustments. The supplementary amount will be reflected in the electricity bills of April, May, and June for consumers of XWDISCOs and K-Electric, except for lifeline consumers.

Nepra has forwarded its decision on the tariff hike to the federal government, which will be officially notified upon final approval.

In January, Nepra approved a tariff increase of Rs4.12 per unit due to monthly fuel adjustments for all consumers except lifeline and K-Electric customers. Previously, in a separate decision, Nepra had sanctioned a tariff hike of Rs2.87 per unit specifically for K-Electric consumers just prior to increasing the tariff for consumers of other Distribution Companies (DISCOs).

It is worth noting that Pakistan recently entered into a Stand-By Agreement (SBA) with the International Monetary Fund (IMF) to receive the third tranche of a $1.1 billion loan. As part of the agreement, the IMF has requested assurances from the government regarding various measures, including raising electricity and gas tariffs from July 1, in addition to increasing quarterly tariff adjustments and making adjustments under fuel price regulations.