In a recent development, the National Electric Power Regulatory Authority (Nepra) has given the green light for K-Electric consumers to bear an additional cost of Rs 3.24 per unit, effective December 2023. This decision, aimed at recovering Rs. 24.5 billion over the next twelve months, has stirred conversations about the impact on consumers.
Nepra’s approval comes on the heels of the federal government’s nod to collect Rs 1.72 per unit from K-Electric consumers, covering two quarterly adjustments for the fiscal year 2022-23. Combined with the newly sanctioned Rs 1.52/unit surcharge, consumers will face a cumulative burden of Rs 3.24/unit from December 2023. The quarterly adjustments are slated to conclude in February 2024, while the surcharge will extend until November 2024.
The Ministry of Energy (MoE) filed a motion, citing discrepancies in the uniform increase of K-Electric tariffs compared to other distribution companies, leading to a Rs. 24.5 billion impact from July 2019 to September 2020. The motion emphasized the need for a consistent consumer-end tariff in line with the National Electricity Policy, 2021.
During the hearing, MoE highlighted the financial strain on K-Electric, citing a subsidy of approximately Rs. 416 billion over the past five years. For the fiscal year 2023-24, the government has allocated a substantial subsidy of Rs. 976 billion for the entire power sector, with Rs. 298 billion earmarked for K-Electric.
In response to queries from Nepra, the MoE clarified that the surcharge, imposed under Section 31(8) of the NEPRA Act, would address outstanding payments to power producers (Rs. 1,671 billion) and Power Holding Limited (Rs. 765 billion) as of September 30, 2023.
Despite consumer resistance, Nepra, empowered by Section 31(8) of the NEPRA Act, approved the motion. The recovery of Rs. 1.52/kWh from K-Electric consumers (excluding lifeline consumers) is set to span twelve months, spanning from December 2023 to November 2024. This decision reflects the Authority’s commitment to the financial stability of the power sector.
 has given the green light for K-Electric consumers to bear an additional cost of Rs 3.24 per unit, effective December 2023. This decision, aimed at recovering Rs. 24.5 billion over the next twelve months, has stirred conversations about the impact on consumers.){kind=link}