The National Electric Power Regulatory Authority (NEPRA) has increased electricity tariffs by Rs1.11 per unit for one month under fuel price adjustment for August.
NEPRA said in a notification that the additional amount will be recovered from electricity consumers across the country, including Karachi, through their October bills. The adjustment will not apply to lifeline consumers.
According to the media reports, August fuel price adjustment will place an additional burden of Rs19 billion on electricity consumers.
The latest increase comes after NEPRA took action over a separate fuel cost issue involving the Central Power Purchasing Agency (CPPA) and the National Transmission and Despatch Company (NTDC).
The regulator imposed a total fine of Rs60 million on the two entities over abnormal increases in fuel costs and system inefficiencies in January 2024.
NEPRA had set the fuel cost benchmark for January 2024 at Rs7.49 per unit, but the actual cost reached Rs14.60 per unit. The CPPA sought an increase of Rs7.13 per unit under the fuel price adjustment, after which NEPRA ordered an investigation.
The inquiry found that expensive electricity was generated using furnace oil and diesel despite cheaper power generation sources being available.
According to NEPRA, generation from LNG and nuclear power plants was reduced, while increased reliance on diesel and furnace oil resulted in costly electricity generation worth Rs31.23 billion.
The authority fined CPPA Rs10 million after the agency failed to satisfy NEPRA over the issue.
NEPRA also imposed a Rs50 million fine on NTDC for failing to improve the transmission system.
The regulator linked the fine to the company’s failure to upgrade transmission infrastructure, which prevented cheaper electricity generated from local coal from reaching northern regions.
The authority has directed CPPA and NTDC to deposit the fines within 15 days.
