Power consumers in for another shock

ISLAMABAD:

Power consumers may face a significant Rs5.72 per unit—or 19.2%—increase in electricity base tariff as the federal government has requested the National Electric Power Regulatory Authority (NEPRA) to implement a uniform tariff for consumers of distribution companies (DISCOs) and K-Electric.

NEPRA—the country’s power regulator—has scheduled a public hearing on Monday, July 8, to make an informed decision on the government’s application.

In its public hearing notice, NEPRA has invited all stakeholders, interested parties, and the general public to participate in discussions on the federal government’s motion regarding consumer-end tariffs for DISCOs and K-Electric, as per the NEPRA Act, 1997, and NEPRA Tariff Rules, 1998.

Following NEPRA’s approval, the federal government will issue a notification to implement the new tariff. The Power Division stated on Thursday that the new electricity rates will be applicable from July 2024.

According to the Power Division, the power price hike will be less than two percent for 16.8 million consumers, while the average increase for the more affluent 42 percent of consumers will be nine percent.

Additionally, electricity rates are expected to decrease as the economy improves, with an average reduction of three percent anticipated by January 2025 compared to June 2024.

The fixed charges are necessary to cover 75 percent of the power sector’s fixed costs. The burden on the industrial sector has been reduced by Rs150 billion to promote domestic industry. The new electricity rates will be officially notified after the NEPRA hearing, according to the Power Division.