NEPRA Introduces Fixed Charges Up to Rs. 1000 in Electricity Bills

The National Electric Power Regulatory Authority (Nepra) has announced a new electricity tariff with fixed charges that will be effective from July 1. The new design introduces fixed charges ranging from Rs200 to Rs1,000 per month for residential consumers, depending on their electricity usage.

Residential Consumers

• 301-400 units: Rs200 per month
• 401-500 units: Rs400 per month
• 501-600 units: Rs600 per month
• 601-700 units: Rs800 per month
• Above 700 units: Rs1,000 per month

Consumers with Time of Use (ToU) meters will also pay a fixed charge of Rs1,000 per month.

Commercial Consumers

Commercial users with a load of less than 5kW will pay a fixed charge of Rs1,000 per month. Those with a load of 5kW or more will now pay Rs2,000 per month, an increase from the previous Rs500, marking a 300% rise.

Industrial Consumers

• B1 category (up to 25kW with ToU meters): Rs1,000 per month
• B2 category (up to 500kW): Rs2,000 per month, up from Rs500, showing a 300% increase
• B3 category (up to 5,000kW): Rs2,000 per month, up from Rs460, a 335% increase
• B4 category (all loads): Rs2,000 per month, up from Rs440, a 355% increase

Purpose of the Changes

Nepra’s aim with these changes is to help distribution companies (Discos) increase their earnings through fixed charges. This move addresses a mismatch in the current electricity tariff structure where 72% of the cost comes from fixed charges, but only 2% of revenue is generated from them.

Future Plans

The government plans to submit a petition to Nepra soon to seek a uniform tariff for the fiscal year 2025 (FY25). The current base tariff has been increased to Rs35.50 per unit for FY25, up from Rs29.78 per unit in FY24. This change is expected to generate over Rs3.763 trillion in revenue for the power sector in FY25.

The significant increase in fixed charges and the base tariff is part of a broader strategy to align revenue with the actual costs of electricity provision, ensuring a more sustainable financial model for the country’s power sector.

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