NEPRA Sets Special Industrial Electricity Tariff at Rs25.30 Per Unit

Islamabad: The National Electric Power Regulatory Authority (NEPRA) has issued a revised special tariff of Rs25.30 per unit for additional electricity use by industrial and agricultural consumers, despite opposition.

NEPRA’s new decision will replace the previous tariff of Rs22.98 per unit, with the aim of encouraging industrial and agricultural consumers to use more electricity.

The previous special tariff was introduced last December for six months, while last month the standard rate for industrial consumers was Rs34.50 per unit.

NEPRA issued its 6 November decision together with a dissenting note.

Position of the dissenting members

Two NEPRA members, Amna Ahmed and Maqsood Anwar Khan, dissented from the revised tariff. In their joint note, they described the proposed rate of Rs25.30 per unit as an arbitrary figure without evidence.

According to the members, the authority’s own calculations put the actual cost of additional electricity at Rs31.83 per unit. They also recommended immediately suspending the special package until authentic data becomes available.

The industrial sector also opposed the new tariff, arguing that the actual cost of additional electricity is either Rs31.83 or Rs29.65 per unit. Setting the tariff at Rs25.30, it said, would increase monthly fuel charges adjustments, the burden of which would fall on consumers across the country.

The dissenting note said the Ministry of Energy was required to re-examine the previous Rs22.98 rate in line with the federal cabinet’s decision and NEPRA’s directions, but this process was not completed.

The members said the increase in the system’s average fuel cost caused by additional electricity use had been recovered from all consumers through fuel charges adjustment. They added that not including the additional units in the quarterly tariff adjustment placed an extra burden on consumers who did not benefit from the package.

They said the Ministry of Energy was required to provide the necessary information for review five months earlier, but the burden of this delay should not be placed on other consumers.

Chairman’s casting vote

NEPRA Chairman Waseem Mukhtar said the findings of the dissenting members deserved serious consideration, but that suspending the package at this stage would not be appropriate. He said the Ministry of Energy should be given another opportunity to provide the required information.

Using powers under the NEPRA Act, the chairman cast a second, decisive vote in favour of the first position. This ended the authority’s deadlock and made the first position NEPRA’s formal decision.

All four NEPRA members agree that the Power Division was required to submit revised calculations six months ago, but despite repeated reminders this was not done. The Independent System and Market Operator and the Power Planning and Monitoring Company have also failed to provide the required details.

The members warned that if information is not provided within the set period, the special package could be suspended or terminated, and legal action could be initiated against the responsible institutions.