Nepra approves over Rs 3 per unit increase in electricity price

• The increase is in lieu of the fuel price adjustment.
• This will not apply to KE consumers.
• The hike was approved for the month of October.

ISLAMABAD: The National Electricity Regulatory Authority (Nepra) on Tuesday approved a hike of Rs 3.07 per unit in electricity rates, which will be applicable to all electricity distribution companies.

In a notice, the regulator said: “The […] The adjustment appears separately on consumer bills based on the units billed to consumers in the month of October 2023 in the billing month of December 2023.”

Nepra has announced the hike due to fluctuations in fuel charges, it said in the notification, in a move that will affect millions of consumers fed up with electricity distribution companies (Discos) inflation.

The hike will not be applicable to Karachi-Electric (KE) consumers. Additionally, electric vehicle charging (EVC) stations and lifeline consumers will also not be affected by the hike, the notification said.

Electricity prices are rising persistently in Pakistan as the cash-strapped nation tries to curb its cyclical debt and meet International Monetary Fund (IMF) bailouts.

The IMF set several conditions – including an increase in electricity and gas tariffs – for the South Asian nation to unlock critical funds that have allowed the government to stave off a potential debt default.

The latest hike comes in the wake of Nepra’s stunning findings, which found that KE and other power companies were overcharging millions of consumers.

“Legal proceedings against all Distribution Companies including KEL under NEPRA Penalty Regulations, 2021 for violation of provisions of NEPRA Act, CSM and tariff terms and conditions etc.,” the energy regulator said in a statement.

The authority took “very serious” cognizance of complaints reported from across Pakistan regarding excessive, inflated and incorrect bills charged by distribution companies to consumers during two months — July and August.

Following the complaints, the feeder regulator held detailed hearings in which it found that snapshots of “meter readings are either invisible or deliberately not taken. Similarly, some cases were reported of monthly meter readings taking place beyond the 30-day billing cycle, resulting in unwarranted/inflated top plate bills being charged to the least users, hence changing the category from protected to non-protected – protected’.

The panel found that 5.7 million Multan Electric Power Company (Mepco) consumers were billed for more than 30 days of the billing cycle in the month of July followed by Gujranwala Electric Power Company (Gepco) which was about 1.2 million in August.

Similarly, Faisalabad Electric Supply Company (Fesco) ie over 800,000 in August, Lahore Electric Supply Company (Lesco) around 700,000 in both months and Hyderabad Electric Supply Company (Hesco) over 500,000 in July.