The cost of electricity has been on the rise in recent years, and it seems that another massive hike is on the horizon. The possibility of a significant increase in electricity tariff has been a hot topic of discussion among both consumers and industry experts. As the electricity demand continues to rise and the cost of production and distribution increases, it is becoming inevitable for utility companies to pass on these expenses to consumers.
Recent Electricity Prices in Pakistan
NEPRA is set to raise electricity prices in Pakistan due to fuel cost adjustments. According to sources, the Central Power Purchasing Agency (CPPA) has requested a Rs7.13 per unit increase in electricity prices for the upcoming month.
Should NEPRA approve the request, consumers, already grappling with inflation, could face an additional burden of Rs66.77 billion. In its plea, CPPA highlighted that 7.93 billion units were supplied to power distribution companies in January 2024.
What are the new Prices of Electricity in Pakistan?
The petition is scheduled for review by NEPRA on February 23. However, it’s worth noting that any revised prices will not affect lifeline KE consumers. This development follows NEPRA’s previous decision on January 31, where they raised electricity tariffs by Rs5.63 per unit for December 2023, in response to a petition by CPPA regarding monthly fuel adjustments.
Conclusion
In conclusion, another massive hike in electricity tariff is a possibility that cannot be ignored. The underlying factors such as the rising cost of production, increasing demand for electricity, and the impact of the pandemic paint a bleak picture for consumers. Utility companies and the government need to work together to find a balance between meeting the growing demand for electricity and keeping prices affordable for consumers. In the meantime, consumers should be prepared to make necessary adjustments in their budget to cope with a possible increase in electricity prices.