The National Electric Power Regulatory Authority (NEPRA) has notified an increase in electricity rates by up to Rs3.76 per unit as part of a quarterly adjustment.
In accordance with Sub-Section 7 of Section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, NEPRA notified its complete decision regarding the periodic tariff adjustment for the third quarter of FY 2023-24, already communicated to the Ministry of Energy on May 31, 2024.
This adjustment permits power companies to recover over Rs46 billion from consumers for the third quarter of FY 2023-24 over three months from June 2024 to August 2024.
Of this amount, Rs28.515 billion will be charged as capacity charges to independent power plants (IPPs) that have not produced any electricity and have remained idle.
Rs10.284 billion will charged for less FCA impact of T&D losses, Rs5.309 billion for O&M, and Rs2.541 billion for system use charges.
The QTA will be reflected in electricity bills for July, August, and September 2024.
These costs stem from past governmental agreements to install numerous power plants, with guarantees to purchase the electricity produced. These guarantees also included payments to the IPPs even if the electricity was not used.
According to the NEPRA notification, consumers will be charged at the rate of Rs1.90/unit, Rs0.9262/unit, and Rs0.9262/unit for June, July, and August 2024, respectively, applicable to all consumer categories except lifeline consumers of XWDISCOs and K-Electric.
In implementing this decision, entities such as Central Power Purchasing Agency Guarantee Limited (CPPAGL), XWDISCOs, and K-Electric must adhere to court orders notwithstanding this decision.
