Pakistan power regulatory authority increases electricity tariff by PKR 2.83 per unit

As per the details, the hike in electricity price will apply to bills of May. However, Life Line and K-Electric consumers have been excluded from the hike. The revised price is expected to place an additional burden of more than PKR 26 billion on consumers.

Pakistan's power regulatory authority's decision comes after K-Electric (KE) on April 29 sought PKR 18.86 per unit hike in power tariff on account of monthly Fuel Charges Adjustments (FCA) of seven months in an application to NEPRA, according to ARY News report.

K-Electric had requested a rise of PKR 18.86 in the power tariff for consumers in Karachi for seven months, from July 2023 to March 2024, according to ARY News report. The NEPRA will hold a hearing on the K-Electric application on May 9.

Earlier in March, the National Electric Power Regulatory Authority (NEPRA) permitted Pakistan's federal government to increase electricity rates by Pakistani Rupees (PKR) 2.75 per unit for all consumers in Pakistan for three months from April to June, with additional revenue effects exceeding PKR 85 billion, Pakistan-based Dawn reported.

The hike in electricity tariff was allowed under quarterly tariff adjustment for the second quarter -- October to December 2023, of the current fiscal year, as per the Dawn report. In the documents released on its website, the authority mentioned that the hike will be applicable to consumers of all categories, except lifeline consumers, including both consumers of ex-Wapda distribution companies and K-Electric.

The authority's decision, announced in a letter, was being sent to the federal government for information and action before its notification by Nepra, Dawn reported. The Nepra claimed that the hike was applied "in the interest of consumers" from April onwards, following the expiry of existing applicable quarterly adjustments in March. (ANI)