The National Electric Power Regulatory Authority (NEPRA) has announced an increase in the power tariff by Rs5.40 per unit as a part of its quarterly adjustment.
The regulatory body stated that, given the current framework of electricity distribution companies, it’s unfeasible to extend relief to consumers. Notably, this revised rate will not affect Lifeline and K-Electric users.
Earlier, NEPRA had reviewed a proposal from distribution firms seeking a tariff increment of Rs5 per unit. This request pertained to the fourth quarter adjustment for the fiscal year 2022-23. Among the petitioners, FESCO proposed augmentation of Rs23.49 billion, GEPCO sought Rs16.13 billion, and both HESCO and IESCO asked for Rs9 billion each. LESCO, citing a need for over Rs31 billion, reported a substantial shortfall, with other companies like MEPCO, PESCO, QESCO, SEPCO, and TESCO also presenting their respective financial requirements.
It’s anticipated that consumers will experience this hike in their September, October, and November bills. An extra Rs5.40 will be the additional charge per unit.
Distribution companies attribute their revenue challenges to declining industrial demand. LESCO pointed out a significant drop in electricity demand, equivalent to 1,000 megawatts from the previous year, attributing this largely to environmental factors and industry shutdowns. Similarly, HESCO reported increased capacity charges due to similar reasons.
At present, DISCOS is handling 350,000 pending connections. With the decrease in demand and recovery challenges, the Central Power Purchasing Agency highlighted an imposition of Rs7.91 surcharges.
