Islamabad, September 7, 2024 – The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs 1.75 per unit in power tariffs for the fourth quarter of the fiscal year 2023-24. This adjustment, made under NEPRA’s quarterly adjustment mechanism, will be recovered during the billing months of September, October, and November.
According to a press release issued by the regulatory authority, this decision has been forwarded to the federal government for implementation. The adjustment is part of the regular process where tariffs are recalculated based on fluctuating costs, aiming to balance the financial pressures on the power sector and recover the increased costs of power generation and distribution.
The latest adjustment comes as the previous quarterly adjustment of Rs 0.93 per unit, which was applicable for the third quarter of the fiscal year, ended in August. As a result, the quarterly adjustment for September is now set at Rs 0.82 per unit.
In addition to the quarterly tariff hike, NEPRA has also announced a Rs 0.37 per unit reduction in power tariffs under the monthly fuel cost adjustment (FCA) mechanism for the month of July. The relief provided under the FCA will be applicable to the bills issued in September.
NEPRA had previously increased the power tariff by Rs 2.56 per unit under the FCA mechanism for June. Now, the regulatory body is providing a Rs 2.93 per unit reduction under the same mechanism, benefiting consumers in the September billing cycle.
A public hearing was held on August 28, where stakeholders and the public provided input on these adjustments. After careful deliberation, the authority finalized these changes to ensure a balance between recovery of costs and the provision of relief to consumers.
Moreover, the net impact of these adjustments for the month of September will result in an overall reduction in electricity prices. Consumers will receive relief of Rs 2.11 per unit by merging both the quarterly and monthly adjustments.
This latest adjustment provides some relief for electricity consumers amid fluctuating fuel costs and ongoing efforts to stabilize the country’s power sector. However, the overall upward trend in electricity tariffs reflects the continued financial challenges in the energy sector, with global energy prices and rising generation costs affecting the local market.
NEPRA’s adjustment decisions aim to balance consumer affordability while ensuring the sustainability of the power supply chain, as the country continues to face energy-related challenges.
