NEPRA Adds Rs. 1.7 Per Unit To Bills – Electricity Prices To Rise In Sep & Nov

Here is one of the latest shocking news for all the Pakistani Residents from NEPRA, as once again there is an increase in your electricity bills for November and September. This time NEPRA adds 1.7 Rs per Unit in Electricity Bills across Pakistan for the next two months.

Rise Of 1.743 Per Unit In Electricity Bill By NEPRA

More problems for those who are tired of inflation: a new fee of Rs 1.743 per unit would make matters worse for millions of people for the next three months, beginning in September 2024.

With the new impact, distribution businesses, including K-Electric, will be able to recoup Rs43.23 billion for the fourth quarter of the fiscal year 2023–2024 through quarterly adjustments. The latest extension will cause disruptions to households already struggling with exorbitant energy bills.

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Consumers Face Rs51 Billion Hike Due to Power Costs and New GST

The payments provided to independent power producers as capacity charges to sustain their ability to generate electricity will account for a sizable portion of this recovery. It was discovered that an additional Rs7.3 billion would be used to pay market operator fees and system usage charges; Rs 11.23 billion would be used to compensate for transmission and distribution losses; and Rs3.5 billion would be allocated to variable operation and maintenance costs.

The entire amount that needs to be recovered from customers would increase to Rs51 billion due to the imposition of an 18% general sales tax on the recovery amount, burdening the economy by Rs7.78 billion.

NEPRA Rejects Rs51 Million Legal Cost 

The distribution companies represented by the NEPRA Chairman last month stated that the need for changes resulted from fewer sales than anticipated for the quarter. The national electricity authority stated that load-shedding was used by some Pesco and other enterprises because their energy demands were not met.

The Central Power Purchasing Agency also requested an additional Rs51 million for legal fees in this adjustment; however, NEPRA denied this request, pointing out that legal fees are already covered by the Market Operation Fee (MOF), which has already been allocated Rs 500 million for legal fees in the Fiscal year 2023–2024.

NEPRA granted a positive adjustment of Rs43.23 billion

Additionally, Kot Addu Power Company’s claim of Rs 72.23 million for tax differentials was included in the CPPA; however, NEPRA rejected this. In addition, Rs 73.18 million was changed to reflect the January 2024 PPIB fee.

To account for capacity charges, variable operation and maintenance costs, higher recovery on increased sales, system usage charges, market operator fees, and other FCA impacts, NEPRA granted a positive adjustment of Rs43.23 billion for the fourth quarter of FY 2023–2024.

Conclusion 

NEPRA’s recent decision to increase electricity rates by Rs. 1.7 per unit will significantly impact consumers across Pakistan in the coming months. With additional charges for capacity payments, operational costs, and transmission losses, along with the imposition of an 18% GST, the total burden on consumers will reach Rs. 51 billion.