Electricity consumers across Pakistan could face higher bills after a fresh tariff increase request reached NEPRA.
The Central Power Purchasing Agency (CPPA) has sought a Rs1.73-per-unit increase under the monthly fuel price adjustment mechanism.
The National Electric Power Regulatory Authority (NEPRA) will hear the application on September 29.
If approved, the proposed adjustment could place an additional financial burden of around Rs29.5 billion on electricity consumers.
The proposed increase would also affect K-Electric consumers in Karachi under the government’s policy for monthly fuel price adjustments.
CPPA Seeks Rs1.73 Per Unit Electricity Increase
The CPPA submitted the application to NEPRA after calculating the electricity supply cost for August.
According to the application, distribution companies received 14.46 billion units of electricity during August.
The electricity was supplied at an average cost of Rs8.82 per unit.
Based on the submitted request, the CPPA is seeking an additional Rs1.73 per unit from consumers.
However, NEPRA will determine whether the requested adjustment should be approved after reviewing the application.
Rs29.5 Billion Burden Proposed for Consumers
The requested electricity price adjustment could increase the financial burden on consumers if NEPRA approves it.
The proposed increase is expected to add around Rs29.5 billion to electricity bills across the country.
Therefore, consumers could see higher electricity costs following the regulatory decision.
The adjustment would apply under the monthly fuel price adjustment mechanism.
K-Electric Consumers Also Included
The proposed electricity increase would not be limited to consumers served by the distribution companies.
K-Electric consumers in Karachi would also be affected under the government’s policy for monthly fuel price adjustments.
As a result, the proposed adjustment could have an impact beyond the consumers served by other distribution companies.
However, the final impact will depend on NEPRA’s decision after the hearing.
NEPRA to Hear Electricity Price Increase Request
NEPRA has scheduled the hearing of the CPPA application for September 29.
During the hearing, the regulator will consider the details submitted by the power purchasing agency.
The application seeks approval for a Rs1.73-per-unit increase based on August’s electricity supply costs.
NEPRA will announce its decision after reviewing the request and hearing the CPPA’s position.
What Could Happen to Electricity Prices?
The proposed adjustment could lead to higher electricity prices if NEPRA approves the CPPA’s request.
The application seeks to recover the requested increase through the monthly fuel price adjustment mechanism.
Meanwhile, the proposed adjustment would also extend to K-Electric consumers under the government’s existing policy.
For now, however, the Rs1.73-per-unit increase remains a proposal pending NEPRA’s hearing and final decision.
The upcoming hearing will determine whether consumers face the proposed increase in electricity prices. NEPRA will assess the CPPA’s request on September 29 before deciding the adjustment. Until the regulator issues its decision, the proposed Rs1.73-per-unit hike remains subject to approval.
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