Electricity tariff hiked by Rs7.91 per unit


Representational image for power grids – Canva/file
  • Nepra approves govt’s proposal to charge uniform tariff from consumers.
  • Early this month, the government raised the base power cost by Rs7.91 per unit.
  • Power distribution companies will collect an additional Rs893.83 billion from consumers due to the hike.

The National Electric Power Regulatory Authority (Nepra) Friday approved the federal government’s request to charge end-consumers of all power distribution companies, including K-Electric, a uniform tariff and collect the newly-increased base power tariff of Rs7.91 per unit from the consumers in the Financial Year 2022-23.

Early this month, the government raised the base power cost by Rs7.91 per unit in an effort to revive the IMF’s delayed Extended Fund Facility (EFF).

In the current fiscal year, the electricity distribution companies will collect an additional Rs893.83 billion from consumers due to the hike. However, this additional tariff would be recovered in three parts, beginning in October 2022 and continuing through July 2022.

The pricing for FY2022-23, which is Rs24.82/kWh on the National Average, is 46.7% or Rs7.91/kWh more than the previously calculated national average tariff of Rs16.81/kWh, according to a statement released by the electricity regulator on Friday. It stated that the Nepra had notified the federal government of the set tariffs.

In accordance with the Nepra Act, the federal government filed a motion for determination of a standard consumer-end tariff containing subsidies and surcharges for all XWDISCOs and K-Electric following this decision.

In its proposal, the government suggested that the base power rate for all distribution companies (DISCOs), including K-Electric, be hiked in three phases: Rs3.50 per unit in July, Rs3.50 per unit beginning in August, and Rs0.91 per unit beginning in October 2022.

The Nepra held a public hearing on this application on July 20 and ultimately granted the federal government’s proposal. No increase is suggested for the Life Line and Protected consumer categories. Once the federal government notifies the decision, it will become effective, stated the electricity regulator.

Prime Minister Shehbaz Sharif has granted advance clearance for a Rs7.91/unit increase in the base power cost.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *