NEPRA reveals electricity generated at Rs7.62 per unit, sold at Rs45

Report outlines breakdown of costs due to the addition of seven taxes and charges

The National Electric Power Regulatory Authority (NEPRA) has unveiled alarming details, revealing that electricity generated at Rs7.62 per unit is sold to consumers at a steep Rs45 per unit due to the addition of seven taxes and charges.

The report outlines the breakdown of these costs, explaining why electricity bills are so high. It reveals that Rs15.28 per unit comprises various taxes, while Rs0.67 per unit is added annually as part of a "New Year" surcharge.

Additionally, consumers bear a Rs3.10 per unit margin for distribution companies (DISCOs). The report further highlights that an adjustment of Rs0.01 per unit is factored into bills, alongside Rs1.37 per unit for transmission charges. The most significant component, however, is Rs17.01 per unit allocated to capacity payments for power producers.

According to NEPRA, while the actual cost of electricity generation is Rs7.62 per unit, the cumulative effect of taxes, charges, and margins inflates the final price to Rs45 per unit for consumers.

Earlier today, K-Electric (KE) filed a request with the National Electric Power Regulatory Authority (NEPRA) for a reduction of Rs4.98 per unit in the electricity tariff under the Fuel Charges Adjustment (FCA) for November 2024.

According to a statement from KE's spokesperson, this marks the third consecutive FCA where consumers could benefit from a reduction in rates.

The request for a price cut will be reviewed by NEPRA, which will issue a written decision after evaluating the application. The hearing for this request will take place on January 15, 2025.