The National Electric Power Regulatory Authority (Nepra) has authorized a hike in electricity rates of Rs3.07 per unit for all power distribution firms.
The regulator stated in a statement that "the adjustment will be indicated individually in the consumers’ bills based on units billed to the customers in the billing month of December 2023” (October 2023).
In an action that would affect millions of electricity distribution companies (Discos) users who are exhausted by inflation, Nepra announced the rise due to changes in fuel prices, as stated in the notification.
The users of Karachi Electric (KE) would not be affected by the hike. Furthermore, the notice stated that lifeline customers and electric vehicle charging stations (EVCs) will not be impacted by the hike.
Pakistan, a cash-strapped country striving to reduce its circular debt and comply with IMF requirements, has seen a steady increase in electricity costs.
For the South Asian country to get vital funding that prevented the government from potentially going into default on its debt obligations, the IMF set down several requirements, including an increase in gas and electricity prices.
The most recent increase follows shocking Nepra findings that showed millions of customers were being overcharged by KE and other electricity providers.
According to a statement released by the electricity regulator, "Legal proceedings against all distribution companies, including KEL, under the NEPRA Fine Regulations, 2021, for violation of the provisions of the NEPRA Act, CSM, tariff terms and conditions, etc."
The authority received complaints from all around Pakistan in July and August about the distribution firms charging consumers high, inflated, and incorrect bills, and they treated these issues "very seriously."