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Reading: Federal Government Seeks Rs6.51 Increase in Electricity Tariff
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Electricity Tariff Increase
PhotoNews Pakistan > Business > Federal Government Seeks Rs6.51 Increase in Electricity Tariff
Business

Federal Government Seeks Rs6.51 Increase in Electricity Tariff

Web Desk
By Web Desk Published May 16, 2024 2 Min Read
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Pakistan electricity tariff hike. Photo: Pakistani Observer
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The federal government has petitioned the National Electric Power Regulatory Authority (NEPRA) to increase the electricity tariff by Rs6.51 for 2024-25. The government aims to raise the power purchase price to Rs27.11 per unit from Rs20.60 per unit.

Last week, NEPRA approved a Rs2.83 per unit hike in the power tariff for March 2024 due to monthly fuel adjustments. According to NEPRA’s notification, the adjustment of Rs2.8372 per kWh will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers, and K-electric consumers.

Energy ministry officials indicated that the base tariff for 2024-25 could surge to Rs36.28 per unit from the current Rs29.78, factoring in distribution margins and prior year adjustments. They also noted that peak-hour tariffs for domestic consumers might rise to Rs48.51 per unit from over Rs42 per unit, accounting for Distribution Companies (Discos) losses, surcharges, taxes, and duties.

The Central Power Purchasing Agency (CPPA) petition projects that Discos will purchase 130.876 billion units of electricity at Rs3.589 trillion during the next fiscal year, with a power purchase price (PPP) of Rs27.11 per unit. Without the hike, the cost would be Rs3.3 trillion at a PPP of Rs25.03 per unit.

Capacity payments for FY 2024-25 are projected to increase to Rs2.278 trillion, driven by the addition of 1,002 megawatts from three projects in 2024. These include the 870 MW Sukhi Kinari Hydro Project (operational by November 30, 2024), the 100 MW Zorlu Solar Power project (by October 11, 2024), and the 32 MW Shahtaj Sugar Mill Limited (by August 11, 2024). These payments will contribute Rs17.42 per unit to the electricity cost.

Currently, capacity payments stand at Rs1.9 trillion, costing end consumers Rs14.09 per unit.

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