Electricity prices may rise by Rs1.78 per unit for one month

CPPA files petition with NEPRA seeking approval for price increase under fuel adjustment for January

ISLAMABAD:

 

Electricity consumers may face a one-month increase of Rs1.78 per unit after a petition was filed seeking approval of January’s monthly fuel cost adjustment.

The Central Power Purchasing Agency (CPPA) submitted the request to the National Electric Power Regulatory Authority (NEPRA), which is scheduled to hear the petition on February 26.

According to the application, 9.14 billion units of electricity were generated in January, of which 8.762 billion units were supplied to distribution companies.

The actual fuel cost stood at Rs12.17 per unit for the month, compared with a reference cost of Rs10.39 per unit, the petition said.

Tariff restructuring proposal

NEPRA held a public hearing on February 10 on a petition filed by the Power Division regarding proposed changes to the electricity tariff structure. Officials from the Power Planning and Monitoring Company (PPMC) briefed the regulator on the plan.

The proposal includes a reduction of Rs4.04 per unit in tariffs for the industrial sector.

Under the plan, fixed charges would be extended to households consuming up to 300 units per month, including protected consumers. Previously, only non-protected users consuming more than 300 units were subject to fixed charges.

Also Read: NEPRA floats draft amendment rolling back net metering policy changes for existing users

For protected consumers, the proposal sets fixed monthly charges at Rs200 for those consuming up to 100 units and Rs300 for those using up to 200 units.

For non-protected consumers, proposed fixed charges are Rs275 per month for consumption up to 100 units, Rs300 for up to 200 units and Rs350 for up to 300 units.

Higher consumption slabs would also see revisions. Fixed charges for non-protected consumers using 301–400 units are proposed to increase to Rs400 from Rs200, while those consuming 401–500 units would pay Rs500, up from Rs400. For users consuming 600 units, fixed charges would rise to Rs675 from Rs600.

However, some relief has been proposed for heavier consumers. Fixed charges for users consuming up to 700 units would be reduced by Rs125 to Rs675, while those consuming more than 700 units would see a reduction of Rs325, also bringing their fixed charge to Rs675.

Officials said the revised fixed charges are expected to generate Rs101 billion annually, which would be redirected to support the industrial sector. The additional revenue is aimed at lowering electricity costs for industry to improve competitiveness and ease pressure on exports.

Fuel price hike

Separately, the government increased the price of petrol by Rs5 per litre and high-speed diesel by Rs7.32 per litre for the next fortnight, according to a notification issued by the Petroleum Division on Sunday.

Petrol prices rose to Rs258.17 per litre from Rs253.17, while high-speed diesel increased to Rs275.70 per litre from Rs268.38.

The revised prices took effect on February 16 and will remain in force for the next fortnight, the notification said.