The National Electric Power Regulatory Authority (Nepra) has announced an increase in the cost of electricity by Rs4.56 per unit, effective immediately.
This adjustment comes as part of the December fuel adjustment and will be reflected in consumer bills for the upcoming month.
This change in tariff will cause an additional burden of Rs40 billion on consumers.
It is worth noting that in two months, electricity prices have gone up by Rs8.69 due to fuel price adjustment. In November alone, the electricity tariff was raised by Rs4.13.
In just two months, the power tariff raise has put an additional burden of Rs76 billion on consumers.
- The hike applies to all consumer categories except for those served by K-Electric and lifeline customers.
- The increase is attributed to variations in fuel costs incurred during December 2023.
- The exact impact on individual bills will vary depending on consumption levels and specific tariff categories.
Impact on Consumers:
- This additional cost is likely to add to the financial burden of households and businesses already grappling with rising inflation.
- Industries reliant on electricity may face increased production costs, potentially impacting product prices.
Exemptions and Concerns:
- The exclusion of K-Electric and lifeline customers aims to provide some relief to vulnerable segments of the population.
- However, concerns remain regarding the overall impact on affordability and the potential economic ripple effects.
- It is unclear how this price adjustment will affect future fuel cost adjustments and overall electricity tariffs.
- Consumers are advised to be mindful of their energy consumption and explore energy-saving measures to mitigate the impact of rising costs.
On Wednesday, NEPRA had issued an initial recommendation to increase the electricity price by a significant Rs5.62 per unit, based on December's fuel price adjustment. The meeting was chaired by Nepra Chairman Waseem Mukhtiar.
This translates to an estimated additional burden of Rs42 billion on consumers nationwide in February in terms of monthly fuel adjustments. The decision came after a hearing on the Central Power Purchasing Agency's (CPPA) request, seeking the price hike to cover rising fuel costs.
According to CPPA, the reference fuel price for December was set at Rs5.40 per unit, significantly higher than the average cost per unit of Rs11 in December. NEPRA has granted preliminary approval to CPPA's request, but a final decision will be issued after further data analysis.
This potential price hike comes on the heels of several recent increases, further straining household budgets and stoking public anxieties.