ISLAMABAD: Consumers who were charged higher electricity rates in August 2024 will see a refund of Re0.8555 per unit reflected in their October bills, as announced by the National Electric Power Regulatory Authority (Nepra).
The decision follows a recent ruling by Nepra, which established that power generation costs were lower in August, yet consumers faced inflated rates. This conclusion was reached during a public hearing on September 26, with an official notification issued on October 24.
The Central Power Purchasing Agency (CPPA) had initially petitioned Nepra for a reduction of Re0.5755 per unit due to fuel cost adjustments. However, the regulator approved a higher refund of Re0.8555 per unit for consumers.
The refund will apply to most consumer categories, excluding lifeline users, domestic consumers using up to 300 units, agricultural consumers, Electric Vehicle Charging Stations (EVCS), and prepaid customers who chose a prepaid tariff. The exemption includes all power distribution companies except K-Electric.
In his remarks, Member Tariff Mathar Niaz Rana expressed concern over the significant rise in the bagasse-based tariff, which now exceeds local coal prices, provoking public backlash. He noted that the bagasse tariff remained stable at Rs5.982 per kWh in June and July but jumped to Rs12.48 per kWh in August, while local coal prices increased more gradually.
Rana criticized the lack of consumer involvement in this decision and referred to the Ministry of Energy’s earlier request to reassess the bagasse tariff, which was dismissed for legal reasons. He argued that the ministry’s public interest concerns should be reconsidered within the legal framework prior to the 2018 amendments to the Nepra Act.
Other Nepra members, including the chairman, countered Rana’s claims, asserting that the rise in bagasse-based fuel costs was due to long-delayed adjustments and should not be compared to local coal tariffs.
