The National Electric Power Regulatory Authority (Nepra) announces an increase in power pricing by Rs2.56 per unit in response to growing electricity bills. This move enables the organization to collect an additional over Rs33 billion from users in August.
On Thursday, the tariff increase was made public as a part of the June monthly fuel cost adjustment (FCA). Electricity consumers’ August invoices will include these extra costs. K-Electric customers and lifeline customers would not be impacted by the increase.
This is the second increase in a row; in May, customers were charged an additional Rs3.33 per unit for fuel adjustments. The money was collected in July.
In July, Nepra gave ex-Wapda distribution businesses (Discos) permission to collect an extra Rs41 billion from customers.
The Central Power Purchasing Agency (CPPA), which procures electricity from power plants on behalf of distribution firms, proposed an increase of Rs2.63 per unit, according to an announcement. But Nepra accepted a marginally reduced charge of Rs2.56 per unit at a hearing on July 31, delaying the verdict.
Millions of consumers nationwide had inflated bills over the April–June period after losing their eligibility for lower rates and slab benefits, according to a recent Nepra investigation report.
Lifeline customers (using 51–100 units monthly) and those in the protected category (using up to 200 units monthly) were most affected by the inflated bills since they were pushed above the monthly ceiling and thus paid higher rates than their actual usage justified.
A task force was formed by the government on August 5th to look into financial and operational problems in the power industry in response to criticism of capacity payments to independent power producers (IPPs).
In addition, Muhammad Ali, the former acting energy minister, was named by Prime Minister Shehbaz Sharif as a special assistant and co-chairman of the task team.
Mr. Ali has already reviewed the IPPs and suggested that a forensic audit of the IPPs be carried out by the government.
