Government Proposes Yet Another Increase in Electricity Rates

The federal government is gearing up for another round of electricity rate hikes, potentially raising the rates by Rs. 5.62 per unit. The Central Power Purchasing Agency (CPPA) has sought approval from the National Electric Power Regulatory Authority (NEPRA) for this tariff adjustment related to fuel prices, as revealed in a request made in December.

NEPRA is scheduled to conduct a hearing on January 31 to evaluate the CPPA’s proposal. If approved, consumers could face a financial burden exceeding Rs. 49 billion. Notably, the current surge in fuel price adjustments, reaching up to Rs. 8.56 per unit, is already straining energy users, exacerbating the impact of escalating prices on consumers.

The January electricity bills unveiled an additional charge of Rs. 4.13 per unit as part of the monthly fuel adjustment for November 2023. With a base tariff exceeding Rs. 50 per unit, customers are grappling with additional costs from separate monthly and quarterly adjustments this month.

It is anticipated that customers will experience the repercussions of this three-month adjustment until March 2024, with an extra fee of Rs. 1.15 per unit imposed in the adjustment for January through March 2024.

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