Nepra Increased Power Tariff by Rs2.56 per Unit, leading to an additional collection of over Rs33 billion from consumers in August, 2024. The hike, part of the monthly fuel cost adjustment (FCA) for June, 2024 will be reflected in the upcoming electricity bills. Lifeline consumers and K-Electric users, however, are exempt from this increase.
This marks the second consecutive tariff rise, following a Rs3.33 per unit hike in May, 2024 which resulted in an additional Rs41 billion being collected from consumers in July, 2024. The Central Power Purchasing Agency (CPPA) initially requested a Rs2.63 per unit increase, but Nepra approved a slightly lower rate of Rs2.56 per unit after a hearing on July 31, 2024.
A recent Nepra inquiry revealed that millions of consumers faced inflated bills between April and June, 2024 as they lost access to reduced rates and slab benefits. Lifeline consumers and those in the protected category were particularly affected, seeing higher rates than their actual consumption warranted.
In response to growing criticism over capacity payments to independent power producers (IPPs), the government has formed a task force to investigate the financial and operational issues plaguing the power sector. Prime Minister Shehbaz Sharif appointed former caretaker energy minister Muhammad Ali as a special assistant on energy and co-chairman of the task force, which is expected to review the electricity sector and IPP payment issues within 30 days.
Exporters have raised concerns that rising energy costs will impact their ability to fulfill export orders, with domestic industries already passing the increased costs onto consumers through higher retail prices.
