NEPRA Notifies Rs. 4.9 per Unit Hike in Power Terrif

NEPRA has announced a Rs. 4.9 per unit increase in power tariff as fuel adjustment for ex-Wapda distribution companies (DISCOs).

The increase in power tariff, amounting to Rs. 4.9213/kWh, will be displayed separately on consumers’ bills, reflecting fuel adjustment for February 2024.

Despite the Central Power Purchasing Agency-Guarantee (CPPA-G) requesting a Rs. 4.9917 per unit hike, citing operational costs such as the use of re-gasified liquefied natural gas (RLNG), NEPRA has decided on the announced increment.

NEPRA made this decision after observing a negative growth of -12.2 percent in actual generation and a continuous decline in national demand before hiking the power tariff.

National demand until February 2024 declined by 12 percent, potentially leading to higher quarterly adjustments and tariff increases.

Furthermore, NEPRA has directed the CPPA-G and the Energy Ministry to analyze the impact of lifting commercial-based load-shedding on demand, while also urging the evaluation of reducing capacity charges.

During NEPRA hearings, concerns were raised regarding the high fuel price adjustments, particularly the financial burden on consumers due to RLNG generation.

The National Transmission and Dispatch Company (NTDC) clarified that RLNG-based operation was essential for system stability, preventing national blackouts.