NEPRA okays Rs2.75 tariff hike for three months

ISLAMABAD, (NNI): The National Electric Power Regulatory Authority (NEPRA) approved an increase of Rs2.75 in the electricity tariff applicable from April across the country under fuel price adjustment (FCA).

The power regulatory body forwarded its decision to the federal government for notifying the hike in the power tariff.

After the notification, the new tariff would be in effect for the upcoming three months, imposing a significant burden on consumers amounting to Rs85.2 billion.

The decision was made with NEPRA's approval of the fiscal year 2023-24 secondquarter adjustment. Distribution Companies (Discos) requested a higher increase of Rs4.43 per unit; however, NEPRA decided to go with the Rs2.75 hike.

This increase, which will show up in the electricity bills for April, May, and June, is the result of several factors 'influencing' the operational costs of the power industry. The NEPRA stated that the tariff revision was mostly due to growing fuel prices and maintenance costs.

To lighten the load on low-consumption households, NEPRA has granted an exemption from tariff increase to lifeline customers who use up to 50 units.

Earlier in February, the NEPRA hiked Rs7.5 per unit in the price of electricity as part of the fuel price adjustment (FCA).

According to NEPRA, the power sector's regulatory authority approved increase in the electricity tariff by Rs7.5 per kilowatt hour (kWh) under the head FCA of January 2024 and this hike in power tariff will be charged to power consumers during the month of March 2024.