Electricity Rates To Increase by PKR 11 Per Unit

The National Electric Power Regulatory Authority (NEPRA) has been given approval from the government to increase electricity rates of high-end residential consumers across the country by an additional Rs 11 per unit, in an effort to lower the burden of consumers with lower consumption.

Previously, NEPRA had decided on a Rs 7.91 per unit increase in the rate of electricity, however the rate that was actually approved by the federal government under the 'tariff rebasing 2022-23' is significantly higher. The new rate affects consumers with a monthly consumption slab of 101-200 units and above, according to a report by Dawn.

In addition to the cross-subsidisation amongst various consumer categories, the government will still be providing Rs 234 billion in subsidies, out of which Rs 220 billion will go to distribution companies of ex-WAPDA and Rs 14 billion will be for K-Electric (KE). This will be done to finance the tariff rebasing cost of poor consumers, according to the Power Division’s request to the regulator.

Under the new rate, the base tariff for consumption above 700 units per month will increase to Rs 35.22 per unit. The base rate for time of use (TOU) meters would go up by Rs 10.06 to Rs 34.39 for peak consumption hours and to Rs 28.07 per unit for off-peak hours.

NEPRA will hold a public hearing on Wednesday as a formality required due to a court order, and will announce the adjustment of tariff subsidies allocated by the federal government for immediate implementation as required under the IMF conditionality.