Nepra hikes power tariff by Rs2.97 per unit from October

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved an increase of up to Rs2.97 per unit in tariff on account of quarterly tariffs and levying surcharge for electricity consumers of ex-Wapda distribution companies (Discos) with effect from October 1.
According to an order along with the schedule of tariff (SOT) released by the Nepra, the tariff increase includes a fresh surcharge of Rs1.25 per unit for all consumers, except residential consumers, and a quarterly adjustment of Rs1.72 per unit for all consumers. The SOT showed no tariff increase for domestic consumers using up to 300 units. However, an increase of Rs1.72 per unit will apply to the consumers using above 300 units.
The tariff increase for all other categories – commercial, general, industrial, single-point supply, temporary supply, residential colonies of industrial units and agriculture – has been put at Rs2.97 per unit, except for agricultural tube wells for which the increase will be Rs2.66 per unit.
However, quarterly tariff adjustment (QTA) of over Rs1.72 per unit would be given effect on October 1 to minimise the impact by replacing the existing QTA of Rs1.62 per unit that expires on September 30. Therefore, effectively the tariff increase for residential consumers will go up by about Rs8 paisa per unit, except for the consumers using up to 300 units per month. However, the tariff for all other consumer categories will effectively go up by Rs1.36 per unit.
The entire tariff adjustment would generate about Rs135 billion for the power companies in additional funding, besides additional revenues for the government, an official said.
The Nepra said the federal government through a recent ordinance had “been empowered to impose surcharges for” certain purposes of fulfilling the financial obligations in respect of electric power services. It said that under the ordinance, the government was now empowered to impose surcharges.
“Regarding surcharges proposed by the federal government for various categories of consumers, it is to be clarified that Nepra has not levied any of such surcharges rather it is the federal government which has the statutory power to do the same,” the regulator’s order said, adding that any such surcharge was to be considered as a cost to be included in the tariff determined by Nepra.
The authority determined quarterly adjustments of DISCOs for the 4th quarter of FY 2019-20 vide a decision dated February 10, 2021, with a uniform rate of Rs0.8276/kWh. Similarly for the 1st and 2nd quarters of FY 2020-21, the authority, through a decision dated May 6, 2021, determined a uniform rate of Rs0.8966/kWh. – TLTP