NEPRA Approves Another Hike in Electricity Tariff

In a new development that further puts the consumers under financial pressure, the National Electric Power Regulatory Authority (NEPRA) has increased electricity tariff by Rs 4.56 per unit on account of fuel adjustment charges for December 2023.

NEPRA has stated that consumers will see these costs reflected in their electricity bills for February 2024. Significantly, the rise does not include Lifeline consumers. The tariff increase is likely to cause an additional burden of Rs 39.8 billion on electricity consumers.

The development comes after NEPRA’s January 31 decision to increase the electricity tariff by Rs 5.63 per unit due to MFA. The approval of this increase came following the conclusion of a hearing by NEPRA on the CPPA petition, seeking Rs 5.63 per unit hike under fuel monthly adjustment for December 2023.

Due to this decision, power consumers will have an extra financial obligation of Rs. 49 billion, which will be reflected in the bill for the next month. Significantly, K-Electric and Lifeline consumers will not be affected by the current tariff hike. NEPRA has stated that a comprehensive judgment on these decisions will be submitted at another time.