NEPRA approves another hike in electricity rates

The National Electric Power Regulatory Authority (NEPRA) has approved another hike in electricity prices.

As per details, NEPRA has approved an increase of Rs 0.83 per unit in electricity prices, but the increase will take effect after a notification is issued by the government.

NEPRA has issued a decision to increase electricity prices, which states that the increase in electricity prices was made on a quarterly basis and the increase in electricity prices was made in the context of adjustment for 2019-20.

According to NEPRA, the increase in electricity prices has been made for one year which will impose an additional burden of Rs 84 billion on the consumers. However, K Electric and Lifeline consumers will be exempted from the increase.

Earlier, the Federal Government approved a massive increase in tariffs of Distribution Companies (Discos) - by approximately Rs 3.50 per unit, of which Rs 1.5359 per unit raise is for December 2020 under monthly fuel price adjustment mechanism and Rs 1.95 per unit raise in base tariff, days before formal resumption of IMF's suspended programme.

On Wednesday, NEPRA notified an increase of Rs 1.5359 per unit in Discos tariffs for December 2020 whereas formal notification of "approved" uniform increase of Rs 1.95 per unit in base tariffs of Discos will be notified on Thursday (today) or Friday (tomorrow).

The cumulative impact of Rs 3.4859 per unit increase in Disco's tariff will be passed on to consumers in their bills of February 2021. The impact of Rs 1.5359 per unit, having a financial impact of Rs 11.6 billion will be charged across the board except to lifeline consumers. This raise will be replaced with an increase to be determined for January 2021.