Base power tariff increased by Rs5.72/unit hike for FY2024-25

Average national base tariff is now set at Rs35.50/unit for the next fiscal year, up from Rs27.78 this year

The National Electric Power Regulatory Authority (Nepra) announced a Rs5.72 per unit increase in uniform national tariff to secure about Rs3.763 trillion in revenue for Discos in FY2024-25, compared to Rs3.28 trillion this year.

The average national base tariff, including K-Electric, is now set at Rs35.50 per unit for the next fiscal year, up from Rs27.78 this year. 

This tariff hike, effective from July 1, 2024, is expected to generate an additional Rs485 billion in revenue for Discos.

The government can adjust the rate increase for various consumer categories through a cross-subsidy without altering the overall revenue requirement set by the regulator. 

With the addition of an 18% general sales tax, the average base tariff will rise to Rs42 per unit, excluding other taxes and surcharges, adding an estimated Rs580 billion burden on Disco consumers. 

While the industrial sector will see a reduction of Rs10.69 per unit in their tariff, announced by the Prime Minister with a negative revenue impact of Rs200 billion, this amount will be transferred to domestic, commercial, and bulk power consumers.

The Power Division, after federal cabinet approval, will file a follow-up tariff table to Nepra to implement the subsidy adjustments for different consumer categories and slabs, effective from July 1, as committed to the IMF.

Monitoring Desk
Monitoring Desk
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