Rs1.90 quarterly tariff hike in electricity bills

The National Electric Power Regulatory Authority (Nepra) censured all power firms on Monday for discouraging solar net metering to consumers, while also finalizing the procedure for Rs1.90 per unit additional quarterly tariff adjustment in energy rates across the country.

During a public hearing chaired by Nepra Chairman Waseem Mukhtar, the Central Power Purchasing Agency (CPPA), which is the power companies’ commercial agent, sought an additional Rs46.8 billion in recoveries from ex-Wapda distribution companies (Discos) for electricity consumed in the final quarter of 2023–2024.

From September to November, consumers nationwide, including in Karachi, would be charged the planned Rs1.90 per unit additional quarterly tariff adjustment (QTA), which would allow electricity firms to collect an additional Rs46.8bn from customers. With the exception of lifeline, which uses fewer than 100 units monthly, all users would equally bear the modification upon approval.

A further Rs22.8 billion was attributed by the CPPA to capacity charges above and beyond those included in the base tariff. This was followed by an additional Rs11.1 billion for the impact of fuel costs resulting from transmission and distribution losses, Rs7.5 billion for the use of service charges and market operation fees (UoSC & MOF), Rs3.6 billion for variable operation and maintenance, and Rs1.79 billion for small power producers and net metering.

Maqsood Anwar, a member of Nepra representing Khyber Pakhtunkhwa, expressed concern about the recurrent QTAs, especially considering that during the third quarter (January to March), customers were further charged Rs1.90 per unit QTA, amounting to Rs46.6 billion. He was informed that the boards of directors of specific record labels supported efforts to reduce net metering.

The division’s supervisor, Mr. Shaikh, stated that BODs were subject to the law and Nepra rules and that the regulator would not tolerate harassment of customers. The division’s supervisor, Mr. Shaikh, stated that BODs were subject to the law and Nepra rules and that the regulator would not tolerate harassment of customers.

In addition to market operator fees, the impact of transmission and distribution losses on fuel cost adjustments, and variable operation and maintenance charges for the third quarter of the current fiscal year, the Discos have requested an increase in order to finance the additional financial impact of capacity charges resulting from currency devaluation and interest rates.