The National Electric Power Regulatory Authority (NEPRA) has recently raised electricity tariffs in Pakistan. This increase would put an additional burden of PJR 40 billion on consumers.
This increase in the electricity tariff is expected to significantly impact consumers’ monthly bills.
The Tariff Increase
NEPRA has decided to raise the electricity tariff by Rs 4.56 per unit, which is a substantial jump in rates. This decision comes as a result of fuel adjustment charges for December 2023.
While these adjustments are a routine part of the electricity pricing mechanism, the magnitude of this increase has raised eyebrows.
Impact on Consumers
Electricity consumers across Pakistan will feel the pinch of this tariff hike in their monthly bills. The increase is expected to place an additional financial burden of Rs. 39.8 billion on consumers.
For many households and businesses already struggling with rising living costs, this news comes as a setback.
Exemption for Lifeline Consumers
It’s worth noting that the increase in electricity tariff will not affect Lifeline consumers. Lifeline consumers are typically low-income households that consume a minimal amount of electricity.
NEPRA’s decision to exempt them from the tariff hike is a move to protect vulnerable segments of the population.
Recent Price Trends
This tariff hike follows a trend of rising electricity prices in Pakistan. Over the past two months, electricity prices have seen a cumulative increase of Rs. 8.69 due to fuel price adjustments.
These adjustments are made to account for changes in the fuel cost used for power generation.
The increase in the electricity tariff, driven by fuel adjustment charges, presents a fresh challenge for power consumers in Pakistan. As electricity bills become more expensive, individuals and businesses need to manage their energy consumption efficiently.
Additionally, policymakers and regulatory authorities must balance the need for revenue generation and the impact on consumers, particularly those with limited financial resources.