Electricity Gets Rs2.37 Per Unit Costlier as Nepra Issues Notification

ISLAMABAD: Electricity consumers have received another blow, as the price of electricity has been raised by Rs2.37 per unit across the country. The National Electric Power Regulatory Authority (Nepra) has issued a notification making power more expensive.

The increase has been made under the monthly fuel cost adjustment. The electricity has been made dearer under the September fuel cost adjustment. It will apply to consumers across the country, including K-Electric.

The Central Power Purchasing Agency had sought an increase of Rs2.56 per unit, citing rising fuel prices in the international market. After a hearing, Nepra approved an increase of Rs2.37 per unit. According to Nepra, the reference fuel cost in September was Rs9.82, against Rs7.45 in the reference.

The additional recovery will be made in November bills, placing an extra burden of Rs30 billion on electricity consumers. However, lifeline consumers and electric vehicle charging stations will be exempt.

Concerns for coming months

According to Power Division sources, hydroelectric generation will fall due to water shortages, and the cost of production will rise as expensive electricity is used. Between December and February, electricity could rise two to three times under fuel price adjustments.

A quarterly adjustment is estimated to make electricity Rs1.30 per unit dearer, which could impose an additional burden of Rs22 billion on consumers. Sources said load shedding, along with higher electricity prices, is likely in December, January and February.

The Indus River System Authority (Irsa) has estimated a water shortfall of more than 22 per cent in winter, during which hydroelectric output is expected to be negligible. A request for a Rs2.56 increase under the September fuel adjustment has already been heard, and if approved, it would place a burden of Rs33 billion on consumers.

It is worth noting that tensions in the Middle East have pushed energy prices in Pakistan to new heights. After petroleum products, liquefied petroleum gas (LPG) has also been hit by price increases. Its price per kilogram has risen by Rs343 in one year, and a domestic cylinder has become more than Rs4,000 dearer.

The government has prepared to introduce a new pricing formula for LPG, which could put it further out of reach for the public.