ISLAMABAD: The National Electric Power Regularity Authority (NEPRA) sanctioned yet another increase in electricity tariffs, instituting a quarterly modification of Rs1.7432 per unit for the upcoming three months.
The new price hike will take effect from September 2024 till November 2024.
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The resolution will permit power distribution firms and K-Electric to recuperate Rs43.23 billion through adjustments for the fourth quarter of the fiscal year (FY) 2023-2024.
The latest increase will impact clients of both, state-run distribution companies and K-Electric. This spells yet another misery on public already overburdened with increasing taxes and double digit inflation. Citizens are paying almost half of their monthly expenditure on electric bills alone each month.
A substantial segment of the recovery, totally Rs21.253 billion, is designed for the capacity charges paid to the independent power producers (IPPs) to sustain generation capacity, irrespective of consumption levels.
An additional Rs7.368 billion will be reclaimed in system usage fees and market operator charges, while Rs11.23 billion is linked to the effects of transmissions and distribution (T&D) losses. Variable operation and maintenance fees accounts for an extra Rs3.5 billion.
The application of an 18 per cent good and services tax (GST) on the total recovery amount will further increase the burden by Rs7.78 billion. This upsurges the total to Rs51 billion to be gathered from the consumers.
A public hearing regarding the adjustments was held on August 26, presided over by NEPRA Chairman Waseem Mukhtar. During the hearing, the distribution companies (DISCOs) indicated that the adjustment were primarily due to diminished sales compared to forecasts for the quarter.
However, NEPRA pointed that certain DISCOs, such as Peshawar Electric Supply Company (PESCO), had failed to meet energy demands and instead opted for load shedding. While the shortcut helped reduce their share of capacity charges, it contributed to lower sales.