The National Electric Power Regulatory Authority (Nepra) on Thursday approved the federal government’s request to raise the electricity base tariff for domestic consumers up to Rs7.12 per unit.
Nepra issued a 52-page decision approving tariff hikes for domestic, commercial, general services, bulk, and agricultural consumers. This decision was sent to the federal government for implementation, proposing a uniform tariff for all power distribution companies (Discos) and K-Electric.
The new approval allows the government to notify individual decisions “issued in the matter of each XWDISCO along with the decision of Power Purchase Price (PPP) forecast for the FY 2024-25 dated 14.06.2024.”
The base tariff for domestic consumers will increase by up to Rs48.84 per unit. However, domestic consumers using up to 200 units per month will be exempted from the hike for three months from July to September 2024.
For consumers using 201 to 300 units per month, the new rate will be Rs34.26 per unit, reflecting a Rs7.12 increase. Those using 301 to 400 units will see an increase of Rs7.02, bringing the rate to Rs39.15 per unit. Consumers using 401 to 500 units will face a hike of Rs6.12, with the rate reaching Rs41.36 per unit.
For usage of 501 to 600 units, the rate will be Rs42.78 per unit, an increase of Rs6.12, and for 601 to 700 units, the rate will be Rs43.92 per unit, also an increase of Rs6.12. For those using more than 700 units, the rate will be Rs48.84 per unit, after a Rs6.12 increase.
Furthermore, electricity costs will increase according to tax slabs. Lifeline consumers using up to 50 units per month will continue to pay Rs3.95 per unit, and those using 51 to 100 units per month will pay Rs7.74 per unit.
The power regulatory authority also approved tariff hikes for commercial, agricultural, general services, and bulk consumers. The base tariff for commercial consumers will increase by Rs8.04, reaching Rs77.15 per unit from July. Agricultural consumers will see a hike of Rs6.62 per unit, bringing their rate to Rs46.83 per unit, and general services will be charged Rs61.03 per unit after a Rs6.98 increase. Bulk consumers will pay Rs59.96 per unit after a Rs5.51 increase. However, the base tariff for industrial consumers remains unchanged.
This increase in power rates follows the Ministry of Energy’s request to eliminate government subsidies, except for lifeline, industry, or agriculture consumers, to achieve financial sustainability in the energy sector by recovering the full cost of service through an efficient tariff structure.
