ISLAMABAD: The National Electric Supply Company on Thursday approved a federal government motion to increase electricity tariffs by up to Rs8.04 per unit and impose fixed charges of up to Rs1,250 per month on various consumer categories starting July 1, 2024.
In its decision, Nepra said that the uniform tariff proposed by the government aligns with the consolidated revenue requirement for all distribution companies (DISCOs) for the fiscal year 2024-25 and, therefore, had no objections to approving the motion and its addendum, the decision that will be applicable of both XWDiscos and KE’s consumers.
It also approved the government’s request to exempt consumers using up to 200 units from the base tariff hike for three months, apply fixed charges of up to Rs1,000 per month on domestic consumers and increase fixed charges by up to 184 percent on other categories of consumers. The uniform tariff determined by NEPRA includes the impact of prior year adjustments (PYA) amounting to Rs99.9 billion, which will be passed on over 12 months from the date of notification of the decision.
The Ministry of Energy (MoE) explained that the total revenue requirement for FY2024-25 has increased to Rs3.768 trillion, as determined by Nepra, leading to an average base tariff increase of Rs5.72 per unit for the fiscal year. The increase is attributed to the Power Purchase Price for FY2024-25 rising by Rs4.86 per unit compared to FY2023-24. The MoE further noted that out of the total increase of Rs5.72 per unit, Rs3.29 per unit will be passed on to consumers from July to September 2024, with the remaining Rs4.55 per unit to be applied from October 2024 to June 2025, in line with Nepra’s decision.
For residential consumers, Nepra approved an increase of Rs3.63 per unit from July to September 2024, and Rs6.27 per unit from October 2024 to June 2025. For commercial consumers, the hike is Rs8.04 per unit and for general services, it is Rs6.98 per unit. The tariff for industrial consumers will remain unchanged. For bulk supply, Nepra approved a hike of Rs5.51 per unit. The agriculture sector will see an increase of Rs6.62 per unit.
As per Nepra’s approved national average uniform determination with prior year adjustments and the Government of Pakistan’s (GOP) applicable tariff for FY2024-25, the tariff for lifeline consumers using 1-50 and 51-100 units per month will remain at Rs3.95 and Rs7.74 per unit, respectively.
For protected consumers using 1-100 units and 101-200 units, Nepra has approved the government’s request for an exemption from the hike in base tariff for three months July-September. The tariff for these categories will stay at Rs7.74 and Rs10.06 per unit from July to September 2024. However, from October to June 2025, the base tariff for protected consumers using 1-100 units will increase by 51 percent, or Rs3.95 per unit, from the existing Rs7.74 to Rs11.69 per unit. For consumers using 101-200 units, a hike of 41 percent, or Rs4.10 per unit, has been approved, raising the tariff from Rs10.06 to Rs14.16 per unit.
For non-protected consumers using 1-100 units and 101-200 units, the tariff will remain unchanged from July to September. From October onward until June, a tariff hike of Rs7.11 per unit (43pc) has been approved, increasing the cost for consumers using 1-100 units from Rs16.48 to Rs23.59 per unit. For consumers using 101-200 units, a hike of Rs7.15 per unit (31pc) has been approved, raising the tariff from Rs22.95 to Rs30.10 per unit. Consumers using 201-300 units will see an increase of Rs7.12 per unit (26pc), bringing the cost from Rs27.14 to Rs34.26 per unit. For those using 301-400 units, an increase of Rs7.12 per unit (22pc) will raise the cost from Rs32.03 to Rs39.15 per unit. Consumers using 401-500 units, 501-600 units, and 601-700 units will face a hike of Rs6.12 per unit, increasing the cost from Rs35.24, Rs36.66, and Rs37.80 to Rs41.36, Rs42.78, and Rs43.92 per unit, respectively. For consumers using over 700 units, a hike of Rs6.12 per unit (14pc) will raise the cost from Rs42.72 to Rs48.84 per unit.
Nepra has also approved fixed charges ranging from Rs200 to Rs1,000 per month for domestic consumers using over 300 units per month. For industrial consumers, fixed charges have increased by 184 percent, from Rs440 per month to Rs1,250 per month.
For commercial consumers, the increase is 150 percent, from Rs500 per month to Rs1,250 per month, and for agricultural tubewells, the charges have doubled from Rs200 to Rs400 per month. For commercial consumers, Nepra has approved an increase of Rs8.04 per unit. For general services, Nepra approved an increase of Rs6.98 per unit, while the tariff for industrial consumers will remain unchanged as per the government’s request.
