NEPRA Approves Tariff Adjustments for Power Utilities

NEPRA Approves Tariff Adjustments for Power Utilities

Islamabad, September 28, 2023 – The National Electric Power Regulatory Authority (NEPRA) has given the green light for an enhancement in tariff adjustments for power utilities.

In response to two petitions initiated by the Federal Government regarding the 1st and 4th Quarters of FY 23, NEPRA has issued its decisions. These quarterly adjustments, in accordance with the Uniform Tariff Policy, will be applicable to K Electric (KE) customers following notification by the Federal Government.

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It’s important to note that NEPRA, in collaboration with the Government of Pakistan, formulates governing policies and regulations that determine the costs passed on to customers in their monthly electricity bills. Individual Distribution Companies (DISCOs) have no influence over this process and cannot make unilateral changes.

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In the first decision dated September 22, 2023, NEPRA has determined a charge of PKR 3.28 per unit to be applied to customers of XWDISCOs (other distribution companies) for the 4th Uniform Quarterly Adjustment for the FY22-23 period. Following the policy guidelines issued by the Federal Government, NEPRA has decided to extend the application of these quarterly adjustments to K-Electric as well. Once the Government notifies this quarterly adjustment, it will be effective nationwide for a six-month period from October 2023 to March 2024.

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In the second decision dated September 27, 2023, NEPRA has decided to apply the 1st Quarterly Adjustment of FY-23 to KE consumers, based on the charges levied on XWDISCOs during February and March 2023, as per the policy guidelines. Accordingly, customers consuming up to 300 units (excluding lifeline customers) will be charged PKR 1.48 per unit, residential customers in other categories will face a charge of PKR 3.21 per unit, and customers in all other categories (except certain Commercial & Agriculture consumers) will be charged PKR 4.45 per unit and PKR 2.68 per unit, respectively. This quarterly adjustment, once notified by the Federal Government, will be recovered in October and November 2023, based on consumption for the months of February and March 2023.

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These tariff adjustments play a crucial role in maintaining the financial viability of the power sector and ensuring the sustainability of electricity supply in the country.

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