The federal government is considering a major overhaul of the tariff structure for electricity and gas, with proposals suggesting that tariffs be set on a seasonal basis rather than remaining fixed year-round.
The proposed changes are designed to adjust rates according to seasonal demand, potentially offering lower electricity rates during winter when demand is typically lower, and reducing gas tariffs in summer when electricity demand peaks.
The initiative aims to boost electricity usage during the winter months, when demand drops to around 10,000 MW compared to the 25,000 MW peak seen in summer.
By lowering winter electricity rates, the government hopes to ease the financial burden of capacity payments on consumers. Similarly, introducing reduced gas tariffs in the summer is intended to encourage its use during periods of high electricity consumption.
The final decision on these proposed seasonal tariffs will be subject to approval from the federal cabinet. If sanctioned, this new tariff system could soon be put into effect, representing a significant shift in the country’s approach to managing energy costs.
In the meantime, electricity consumers are experiencing mixed outcomes as the National Electric Power Regulatory Authority (NEPRA) adjusts electricity tariffs.
NEPRA has announced a reduction of 37 paisas per unit in the monthly fuel adjustment for September, providing some relief to consumers.
However, this relief is counterbalanced by a substantial increase of Rs1.75 per unit approved under the quarterly adjustment framework for the financial year 2023-24.
This increase will impact bills for September, October, and November, leading to higher electricity costs despite the recent minor decrease in fuel adjustment charges.
