ISLAMABAD: Karachiites should get ready to bear a jolt in the form of significant increase in power tariff as National Electric Power Regulatory Authority (NEPRA) on Wednesday approved increase in the price of electricity for the power consumers of K-Electric by upto Rs 4.45 per unit.
NEPRA, on the request of the federal government, has approved the increase for the first quarter adjustment of the financial year 2022-23 and forwarded its decision to the federal government for notification. After a notification from the federal government, the increase in electricity price for Karachiites will be applicable.
According to NEPRA decision, NEPRA has approved to increase the price of electricity from Rs 1.49 to Rs 4.45 per unit and the additional collections from K-Electric consumers will be made in October and November 2023.
As per details, NEPRA has increased the power tariff by Rs 1.48 per unit for those consumers of the K-Electric (KE) who consume 300 units in a month while Rs 3.21/unit for those consumers who consume 301 to 700 units and above. Similarly, Rs 4.45/unit hike in the electricity tariff for those consumers of KE who use above five kilowatt of electricity load. Furthermore, Rs 4.45/unit hike has also been made for Electric Vehicle Charging Stations (EVCS).
According to NEPRA’s decision, the Ministry of Energy (MoE), Power Division (PD) vide letter dated 22.08.2023, filed motion with respect to recommendation of consumer-end tariff for K-Electric and Policy Guidelines for uniform quarterly adjustments under Section 7 & 31 of the NEPRA Act, 1997 read with Rule 17 of NEPRA Tariff (Standards and Procedure) Rules, 1998.
The MoE submitted that NEPRA determined the Multi Year Tariff vide decision dated July 05, 2018, for KE, duly notified by the Federal Government on May 22, 2019. Subsequently, various quarterly tariff adjustments for KE were determined by the Authority. The quarterly adjustment was notified by Federal Government vide SRO 1037(1)/2020 as amended from time to time, to maintain uniform tariff in the country.
The MoE also submitted that the Authority has determined Periodic Adjustment in Tariff for the 2nd Quarter of FY 2022-23 for XWDISCOs i.e. Rs.0.4689/kWh and recommended uniform rate for consumers of DISCOs with recovery period of three months from April, May and June 2023. The same has been notified for DISCOs vide SRO dated 13.04.2023.
The MoE further stated that in accordance with the National Electricity Policy, 2021 the Government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through incorporation of direct / indirect subsidies. Accordingly, KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of KE determined by the Authority, consistent with the uniform national tariff of DISGOs. The same has been approved by the Federal Government and it was decided that the same be submitted to the Authority for consideration
in terms of the provisions of the NEPRA Act.
In light of the above, instant Motion is being filed with respect to Consumer End Tariff Recommendations of KE, under Section 7, 31(4) and 31(7) of the NEPRA Act read with Rule 17 of the NEPRA Rules so as to reconsider and issue for KE, modified uniform variable charge,
to maintain uniform tariff across the country and to recover the revenue requirements of KE determined by the Authority keeping in view the proposed targeted subsidy and cross subsidies. The Authority is, accordingly, requested to issue separate SoT with prospective application of applicable uniform rates after incorporating tariff rationalization i.e. Rs.0.4689/kWh for all categories of consumers of K-Electric, except life line consumers. The adjustment shall be applicable on the consumption of April, May & June 2023, to be recovered from consumers in Sep., Oct. & Nov. 2023, respectively.
Regarding request of the Federal Government to issue a separate SoT for application of 1st quarterly adjustment of FY 2022-23, the Authority has decided to issue a separate SoT, which will be applicable for the months of October & November 2023, on the consumption of February 2023 and March 2023 respectively on consumers of K-Electric.
The amount so allowed shall be accounted for by K-Electric in its subsidy claims. The Federal Government is also requested to adjust this amount while processing the subsidy claims of K-Electric, said NEPRA decision.
“The instant decision is intimated to the Federal Government for notification in terms of Section 3 1(7) of the NEPRA Act”, reads MEPRA decision.