Nepra approves 11% hike in electricity tariff

July 13, 2024 (MLN): The National Electric Power Regulatory Authority (Nepra) has approved an average increase of Rs3.29 per unit in the base electricity tariff.

This takes the average base electricity tariff to Rs33.07, up 11% from fiscal year 2023-24.

Similarly, the government's request to apply fixed charges at 25% of the sanctioned load or actual Maximum Demand Indicator (MDI) for the month, whichever is higher, has also been approved.

Nepra held a public hearing on July 08 to address government demands to pass on an additional burden of over Rs700 billion to electricity consumers during the current fiscal year by raising the average national tariff.

"The authority has no objection in approving the motion along with the subsequent addendum of the federal government”, Nepra said in the final order issued.

The new rates will be applicable from July 01, 2024 across the country.

The ministry of energy explained that the total revenue requirement for FY 2024-25 has increased to Rs3,768 billion, as determined by NEPRA, resulting in an increase of Rs5.72/kWh in the average base tariff for FY 2024-25.

While explaining the reasons for the increase, the Ministry highlighted that the Power Purchase Price (PPP) for FY 2024-25 increased by Rs4.86/kWh compared to FY 2023-24.

However, the ministry further submitted that out of the total increase of Rs5.72/kWh, an increase of Rs3.29/kWh will be passed on to consumers from July to September 2024, and Rs4.55/kWh thereafter until June 2025.

The differential amount will be covered by the federal government in the form of a subsidy.

Applicable for Jul-Sep 2024, Amount in PKR/kWh

The largest increase in rupee terms is for commercial consumers, who will see a hike of Rs8.04 or 22% per unit, followed by general services with an increase of Rs6.98 or 18% per unit.

Moreover, an average hike of Rs6.62 or 24% has been allowed for agriculture consumers and Rs5.51 or 16% per unit for bulk consumers.

Meanwhile, the approved increase in the residential tariff is Rs3.63 or 14% per unit for July to September, and Rs6.27 per unit or 24% for the remainder of the fiscal year.

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