Nepra Increases Electricity Tariff by Rs4.56 per Unit
Nepra has announced a sudden increase in electricity tariffs by Rs4.56 per unit, effective immediately, as part of the December fuel adjustment. This adjustment will add a significant burden of Rs40 billion on consumers in the upcoming month. The consecutive rise in electricity prices over the past two months, totalling Rs8.69, has already imposed an additional cost of Rs76 billion on consumers.
Key Points
- The tariff hike applies to all consumer categories except K-Electric and Lifeline customers.
- Variations in fuel costs during December 2023 are cited as the primary reason for the increase.
- Individual bill impacts will vary based on consumption levels and tariff categories.
Impact on Consumers
The increased electricity costs are expected to exacerbate the financial strain on households and businesses amidst rising inflation.
Industries reliant on electricity may experience heightened production costs, potentially leading to increased product prices.
Exemptions and Concerns
- Excluding K-Electric and lifeline customers aims to alleviate pressure on vulnerable population segments.
- Concerns persist regarding the broader affordability implications and potential economic repercussions.
Further Developments
- The long-term implications of this adjustment on future fuel cost adjustments and overall electricity tariffs remain uncertain.
- Consumers are advised to monitor their energy usage and consider energy-saving measures to mitigate the impact of rising costs.
NEPRA’s Initial Recommendation and Potential Further Increases
NEPRA had initially recommended a substantial Rs5.62 per unit increase in electricity prices based on December’s fuel price adjustment.
This recommendation followed CPPA’s request to cover escalating fuel costs, potentially adding Rs42 billion to consumers’ burdens nationwide in February.
NEPRA granted preliminary approval to CPPA’s request pending further data analysis, suggesting the possibility of additional price hikes in the near future.
These consecutive price hikes compound the challenges faced by consumers, prompting concerns about affordability and economic stability.
