Nepra Cuts Electricity Prices by Rs1.14 Per Unit

Nepra

In a significant move to provide relief to electricity consumers, the National Electric Power Regulatory Authority (Nepra) has approved a decrease in electricity prices and introduced a special winter package aimed at easing financial pressures on consumers.

Nepra announced a Rs1.14 per unit reduction in electricity prices for October, under the monthly fuel cost adjustment mechanism.

This decision followed a public hearing held on November 26, based on a request by the Central Power Purchasing Agency (CPPA), which initially sought a Rs1.1 per unit decrease.

The price cut applies to all consumers using more than 100 units from distribution companies (DISCOs), excluding lifeline consumers and electric vehicle charging stations. Nepra issued an official notification to formalize the decision.

Winter Package Offers Significant Savings
Additionally, Nepra has approved a special winter package to incentivize higher electricity consumption during the off-peak months of December to February.

The package offers substantial savings for domestic and industrial consumers, with rates for additional consumption set at Rs26.7 per unit, reflecting notable reductions compared to last year.

For domestic consumers, the winter package provides:

• Savings of 30% or Rs11.42 per unit on minimum additional consumption.
• Savings of 50% or Rs26 per unit on maximum additional consumption.

For industrial consumers, the benefits include:

• Savings of 18% or Rs5.72 per unit on minimum additional consumption.
• Savings of 37% or Rs15.5 per unit on maximum additional consumption.

The initiative also extends benefits to industrial net-metering and weighing consumers, previously excluded from such schemes.

Approval and Implementation
The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved the winter package in mid-November.

The initiative targets households and businesses consuming over 200 units, offering savings of 34% to 47% for commercial users and 18% to 37% for industries.

The package is expected to boost electricity consumption during the winter, reducing reliance on gas.

Eligibility will be determined by comparing winter consumption in 2024 with the average usage over the same months in the past three years. The government has also secured approval for this package from the International Monetary Fund (IMF).

By encouraging higher electricity usage and leveraging existing capacity, Nepra’s decisions aim to alleviate financial stress on consumers and promote energy efficiency during the colder months.