ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased electricity tariffs by Rs2.56 per unit, which will be reflected in August bills. This hike comes amid rising electricity costs and will result in an additional Rs33 billion being collected from consumers this month.
The increase is part of the monthly fuel cost adjustment (FCA) for June and will affect most electricity users, except for lifeline consumers and those using K-Electric. This is the second increase in a row, following a Rs3.33 per unit rise in May that was collected in July.
The Central Power Purchasing Agency (CPPA) had requested a hike of Rs2.63 per unit, but Nepra approved a slightly lower increase of Rs2.56 per unit after a hearing on July 31.
A recent report from Nepra highlighted that many users faced higher bills during April-June due to losing access to reduced rates. This was especially hard on lifeline consumers, who use between 51-100 units per month, and those in the protected category, who use up to 200 units per month.
In response to criticism over payments to independent power producers (IPPs), the government has formed a task force to investigate issues in the power sector. Prime Minister Shehbaz Sharif has appointed Muhammad Ali, a former caretaker energy minister, as a special assistant on energy to help lead this task force. The task force is expected to report its findings within 30 days.
Rising energy costs have led exporters to warn the government that accepting international orders is becoming more difficult, while domestic industries are passing on the increased costs to consumers through higher prices.