Islamabad, Pakistan – The National Electric Power Regulatory Authority (NEPRA) has greenlit a significant surge in electricity prices by Rs7.05 per unit in Pakistan. This adjustment, attributed to fuel cost variations in January 2024, was proposed by the Central Power Purchasing Agency (CPPA).
The impact of this revision is expected to burden consumers with an additional Rs66 billion, with the new tariff exempting K-Electric and lifeline consumers. Distribution companies are authorized to recover this extra amount in the electricity bills for March 2024.
Expected Electricity Bills in March 2024
Key Points:
1. Fuel Cost Adjustment:
- NEPRA’s approval of the electricity price increase is based on the fuel cost adjustment for January 2024.
- The Central Power Purchasing Agency (CPPA) initiated the proposal for the surge in electricity prices.
2. Consumer Impact:
- The revised prices will impose an additional financial burden of Rs66 billion on consumers.
- K-Electric and lifeline consumers are exempted from the new tariff.
3. Recovery Mechanism:
- Distribution companies are authorized to recover the added amount from consumers in the electricity bills for March 2024.
4. Gas Price Hike:
- Preceding this electricity price adjustment, the federal cabinet increased gas prices for residential users up to 67% and for fertiliser plants by 700%.
- This move is aimed at recovering an additional Rs242 billion from all consumers.
5. Implementation Timeline:
- The revised electricity prices, a consequence of fuel cost adjustment, will take effect in March 2024.
- Distribution companies will incorporate the new rates into the bills for the upcoming month.
6. IMF Condition Compliance:
- The decision to increase gas prices aligns with the International Monetary Fund’s condition, necessitating a price hike by February 15th.
This development in energy prices reflects the ongoing economic dynamics in Pakistan, with implications for consumer expenses and broader economic considerations.
