Customers are preparing for yet another hit to their household finances as 2024 approaches. The National Electric Power Regulatory Authority (Nepra) has suggested raising power rates by much to Rs 4.66 per unit starting January 2024, indicating a possible spike in pricing. This projected increase, which is linked to the fuel adjustment for November, may cost power users an extra Rs 33 billion in total.
On Wednesday, Nepra held a public hearing. Sharp criticism was leveled at the electricity regulator's decision to raise tariffs throughout the hearings. Allegations were made against the power regulator for allegedly caving into pressure from the power division and forcing customers to bear the cost of electricity bills. Nepra responded by reiterating its position, highlighting its impartial decision-making procedure, and claiming that careful consideration of all pertinent information was done before reaching a determination on power rates.
To defend the planned increase, the Central Power Purchasing Agency-Genco (CPPA-G) pointed out that consumers were already paying Rs 3.08 per unit as a result of the current fuel adjustment. The net effect on customers' power rates will be Rs 1.58 per unit as a result of this. This answer, though, did nothing to allay worries.
Nepra questioned the CPPA-G's decision to run its power plants using imported fuel during the time under consideration during the public hearing. A Thar coal-based plant's maintenance-related closure was found to have contributed to the increase in energy rates, raising doubts about the choice to close more economical units for upkeep.
The 13% decrease in electricity use contributed to the price increases as well. In November 2023, power plants that were mostly powered by pricey LNG imports became more costly for customers to purchase energy from.
Net electricity provided to DISCOs in November 2023 was 7,288 GWh (96.57%) at a rate of Rs9.4448 per unit, with a total cost of Rs68,834 million, according to statistics presented by the CPPA-G with Nepra.