NEPRA reveals electricity costs 491% higher than generation price

The National Electric Power Regulatory Authority (NEPRA) has unveiled a 491% increase in electricity costs from generation to consumer billing, according to its report. 

Electricity generated at Rs7.62 per unit is sold at Rs45 per unit, with taxes and surcharges significantly driving the price hike.

NEPRA’s report highlights that Rs15.28 per unit is added through taxes, Rs17.01 per unit for capacity payments to power producers, and additional charges for distribution and transmission inefficiencies. 

A “New Year” surcharge of Rs0.67 per unit also adds to consumer burdens.

Meanwhile, K-Electric has filed for a reduction of Rs4.98 per unit under the November 2024 Fuel Charges Adjustment, marking a third consecutive move for rate cuts. 

NEPRA is set to review the request in a hearing on January 15, 2025.

The regulator has emphasized the need for urgent reforms in generation optimization, governance of distribution companies, and promotion of renewable energy. 

NEPRA’s findings call for systemic changes to mitigate consumer costs and stabilize Pakistan’s power sector.