IMF condition fulfilled, per unit price of electricity increased by more than 14 rupees

Islamabad: Electricity has been increased by 14 rupees 24 paise per unit for electricity consumers across the country.

According to the details, the National Electric Power Regulatory Authority (NEPRA) has issued a decision to collect the deferred bills for the two months (August and September) of the current fiscal year 2022 (August and September) from the electricity consumers in the next eight months.

On the instructions of the Prime Minister, the Federal Ministry of Energy had postponed the collection due to the adjustment of fuel charges in these two months due to floods in most areas of the country. According to the decision issued by the authority, all electricity distribution companies (DISCOs) and K Electric will be charged from the electricity consumers from March to October 2023.

This year electricity consumers have been allowed to charge up to Rs 14.24 per unit, in which protective consumers using 200 units will be charged an additional Rs 10.34 per unit in 8 months. Non-protective customers using up to 200 units will also be charged an additional Rs 14.24 per unit.

Similarly, non-protected consumers using 300 units will also be charged an additional Rs 14.24 per unit while farmers will be charged an additional Rs 9.90 per unit in 8 months.

In the same period for K Electric customers, Rs 9.97 per unit will be charged from protected customers up to 200 units, Rs 13.87 per unit from unprotected customers up to 200 units and Rs 13.87 per unit from unprotected customers up to 300 units.

Similarly, private agricultural consumers will also be charged Rs 9.90 per unit. According to the authority's decision, all electricity distribution companies and K-electric consumers will be charged Rs 2.75, Rs 2.75, Rs 2.25, Rs 0.95, Rs 0.79, Rs 1.50, Rs 1.75 and Rs 1.13 per unit respectively in eight months while Nepra It has also issued a decision to increase the price of electricity by 48 paisa per unit in the context of monthly fuel charges adjustment.

CPPA had held a hearing on February 28 on the request to increase the price of electricity by Rs 1.17 per unit for January in view of monthly fuel charges in Nepra. According to Nepra's decision, the actual fuel charges in the month of January were Rs 11.03 per unit while the reference fuel charges were Rs 10.55 in the same month, thus the increase in electricity price is 48 paise per unit.

Nepra has also directed all electricity distribution companies to separately explain this increase to electricity consumers and collect it in March bills. Nepra has also issued a stipend for K Electric to increase the price of electricity by Rs 1.71 per unit for the monthly fuel charges adjustment.

K Electric had requested Rs 2.70 per unit for monthly fuel charges adjustment in the Authority for the month of January and the hearing was held on February 28. According to the decision, this increase for January will be charged to the electric customers in the bills of March.

Similarly, NEPRA has issued a decision on the request of the Ministry of Energy to withdraw the subsidy on regionally competitive energy rates given to Kisan package and five export sectors from March 1, 2023.

According to the Nepra decision, the Ministry of Energy has returned to the authority the concessional rate of electricity given to five export sectors which was Rs 19.99 per unit and the special relief package given to private agricultural consumers of Rs 3.60 per unit in the light of the decision of the Federal Cabinet on February 28, 2023. Since any kind of subsidy to electricity consumers is the jurisdiction of the federal government which has been withdrawn, therefore these two reliefs have also been withdrawn on March 1, 2023.

It should be noted that the government has increased the subsidy and tariff on electricity on the condition of IM and put an additional burden of 76 billion rupees on the consumers.