In a recent development, the National Electric Power Regulatory Authority (NEPRA) issued a notification on February 2, 2024, announcing an increase in electricity prices across Pakistan. This hike of Rs. 4.56 per unit comes as part of the incorporation of December fuel adjustment charges. The decision to increase prices was based on recommendations from the Central Power Purchasing Agency (CPPA-G), which had suggested an increase of Rs. 5.61. However, NEPRA decided on a slightly lower increment to balance the impact on consumers.
The increase in electricity prices is expected to put an extra burden of Rs. 40 billion on the consumers. This adjustment in fuel charges aims to address the rising costs associated with power generation, particularly in relation to fuel expenses incurred during December. NEPRA, as the regulatory authority, is tasked with ensuring a fair and transparent mechanism for determining electricity prices in Pakistan.
It is important to note that certain segments of consumers will be exempted from the fuel adjustment charge increase. K Electric, Electric Vehicle charging stations, and lifeline consumers are among those who will not be subjected to the additional charges. This exemption is a measure taken to alleviate the impact on vulnerable consumers and promote sustainable energy practices.
NEPRA’s decision to incorporate the fuel adjustment charges is a reflection of the challenges faced in the power generation sector. The costs associated with fuel, especially during the month of December, have contributed to the need for an increase in electricity prices. By addressing these rising costs, NEPRA aims to ensure the stability and sustainability of the power sector in Pakistan.
The increase in electricity prices may raise concerns among consumers, who are already grappling with the rising cost of living.
