NEPRA approves power tariff increase of Rs2.8372 per unit

In a recent announcement, the National Electric Power Regulatory Authority (NEPRA) has approved a tariff increase of Rs2.8372 per kilowatt-hour (kWh) for all ex-Wapda distribution companies (XWDISCOs).

This adjustment, reflected in a notification issued by NEPRA, is a result of fluctuations in fuel charges observed during March 2024.

The tariff adjustment will be applied to consumer bills based on the units billed in March 2024. This increase will be listed separately in consumer billing statements to reflect the additional cost due to fuel charge variations.

However, NEPRA clarified that this adjustment will not apply to certain categories of consumers, including Electric Vehicle Charging Stations (EVCS) and lifeline consumers, who benefit from lower electricity rates.

This development follows a request made last month by the Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, which proposed an additional fuel charge of Rs2.94 per unit to cover the higher costs experienced in March 2024.

The CPPA reported that the actual fuel cost for the month stood at Rs9.3819/kWh, significantly higher than the reference fuel cost component of Rs6.4417/kWh, leading to the proposed increase.

After reviewing the CPPA’s request and the associated fuel cost variations, NEPRA concluded that an increase of Rs2.8372/kWh in the national average uniform tariff was justified.

This adjustment is intended to balance the higher fuel costs incurred in March and ensure that the tariff structure remains aligned with the cost of energy production.

Consumers are advised to review their electricity bills for March 2024 to understand how this adjustment will impact their total energy costs.