In a recent announcement that may further strain the pockets of electricity consumers, the National Electric Power Regulatory Authority (NEPRA) has officially greenlit an increase of Rs1.15 per unit in the electricity tariff. This unsettling development comes on the heels of an already burdened consumer base and is attributed to the monthly fuel adjustment for the first quarter of the current financial year.
Tariff Hike Details:
According to the notification released by NEPRA, consumers will face additional charges on their electricity bills for the period spanning January to March 2024. This tariff hike is estimated to place an extra financial burden of Rs22.297 billion on power consumers across the board, except lifeline consumers and K-Electric users.
Origins of the Increase:
The Central Power Purchasing Agency (CPPA) played a pivotal role in advocating for this tariff hike. Acting on behalf of power distribution companies (DISCOs), the CPPA applied NEPRA, pushing for an increase of Rs4.66 per unit. The proposed increase, under the Fuel Charges Adjustment (FCA) for November 2023, was aimed at offsetting the rising costs associated with power generation.
CPPA’s Application:
In its application to NEPRA, the CPPA highlighted that the total electricity generated from various fuels in February 2023 amounted to 7.22 billion units at a basket price of Rs 9.44 per unit. The application underscores the complex dynamics of the energy landscape, with fluctuations in fuel prices contributing to the need for periodic tariff adjustments.
Previous Adjustments:
It’s worth noting that this recent increase comes after NEPRA had already raised the electricity tariff by Rs3.07 per unit on December 6. However, this earlier adjustment did not impact lifeline consumers and those served by K-Electric. The cumulative effect of these successive tariff hikes raises concerns among consumers about the sustainability of their monthly electricity expenditures.
Consumer Implications:
As electricity bills are set to climb once again, consumers are left grappling with the continued strain on their finances. The affordability of electricity, a basic necessity in today’s world, is becoming a growing concern for households and businesses alike. The impact of such tariff hikes extends beyond individual consumers, potentially influencing the overall economic landscape.
Conclusion
With the announcement of yet another tariff increase, the burden on electricity consumers in Pakistan continues to intensify. As stakeholders navigate these challenging times, there is a pressing need for a comprehensive strategy to address the underlying issues affecting electricity tariffs. The quest for sustainable and affordable energy remains a shared responsibility among regulators, power companies, and consumers alike.