NEPRA approves Rs3.28 per unit increase in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved Rs3.28 per unit increase in power tariff on the account of fuel cost adjustment for fourth quarter of fiscal year 2022-23.

The increase has been allowed under quarterly tariff adjustment (QTA) mechanism to finance the additional impact of capacity charges due to currency devaluation, interest rate hike and other factors.

The power division of energy ministry had originally sought Rs6.20 per unit adjustment for the fourth quarter of 2022-23 fiscal year for ex-Wapda distribution companies (Discos) to fill a Rs146bn financing gap within three months but later sought its staggered recovery at the rate of Rs3.55 per unit in six months amid public protests against skyrocketing tariff hike.

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The regulatory body has sent his decision to the federal government for final approval. The increase in electricity prices will come into effect immediately after it is approved by the government.

The distribution companies (Discos) would recover Rs159 from consumers during the period of six months (October 2023 to March 2024).

Subsequently, the power division also asked NEPRA to allow application of similar rates on K-Electric consumers to ensure uniformity and reduce subsidy payable against them.

The revised rate will be applicable on all customers.

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