NEPRA hikes electricity tariff by Rs 7.91 to Rs 24.82 per unit


The National Electric Power Regulatory Authority (NEPRA) okayed an increase in the price of energy of Rs. 7.91 per unit and released a notification to that effect. 

The per-unit price of power has been raised from Rs. 16.91 to Rs. 24.82, representing a 47 percent rise. 

According to NEPRA, the price hike is due to higher in fuel prices as well as an increase in the cost of production. The increased tariffs would take effect in July 2022, subject to permission from the government, according to the notification. 

The companies had filed multi-year tariff requests for FY 2020-21 to 2024-25, according to NEPRA’s determination for X-Wapda distribution companies (DISCOs). 

Under the already approved multi-year tariff, Islamabad Electric Supply Company, Lahore Electric Supply Company, and Faisalabad Electric Supply Company filed annual adjustment/indexation requests. 

Read more: NEPRA slashes power tariff by 99 paisa per unit to refund Rs 22.5 billion to consumers

According to NEPRA, the tariff for FY 2022-23 has been set, which is Rs. 24.82 per unit (kWh) on a national average, which is Rs. 7.91 per unit more than the previously determined national average tariff of Rs. 16.91 per kWh. 

According to the announcement, the increase of Rs. 7.91 per unit kWh is mostly due to increases in fuel prices, capacity costs, and the impact of rupee (PKR) devaluation. According to NEPRA data, the Energy Purchase Price (EPP) is expected to be Rs. 1,152 billion, while capacity charges, which include NTDC costs, are expected to be Rs. 1,366 billion. 

With planned sales of 113,001 Giga Watt Hour, the total revenue requirement of XWDISCOs is estimated to be Rs. 2,805 billion, including DISCOs margin and Prior Year Adjustment (PYA) (GWh). 

MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO, and TESCO have been granted a Rs. 406 billion investments for their 5-year distribution investment programme. 

For FY 2022-23, XWDISCOs allowable T&D losses have been decreased from 13.46 percent to 11.70 percent. 

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