23 July,2022 , 07:57 amAdmin

Electricity Prices Increase Up to Rs. 7.91 per Unit

The National Electric Power Regulatory Authority (Nepra) Friday accepted the request of the federal government to charge end-consumers of all distribution companies including K-Electric with a uniform rate and to collect the recently increased base rate which is Rs7.91 per unit. This will be collected from customers during the Financial Year 2022-23.

The government raised the power tariff base in the amount of Rs7.91 per unit at the beginning of this month to allow for the revival of the IMF's stagnant Extended Fund Facility (EFF).

After the increase, energy distribution firms will be able to recover another Rs893.83 billion from customers during the current fiscal. The increased price is expected to be recovered in three stages i.e. July 2022, August-Sept 2022, and onwards to October 2022.

The tariff has been set for FY2022-23, and is based on the National Average is Rs24.82/kWh, and is 46.7 percent, or Rs7.91/kWh more than the previously estimated national average of Rs16.91/kWh The power regulator announced in a statement released on Friday. It stated that Nepra has communicated the proposed prices to federal officials in exchange for an announcement.


Following this decision the federal government, in accordance with the Nepra Act, filed a motion to establish a single consumer-end tariff, which would include subsidies and surcharges to all XWDISCOs as well as K-Electric.

The government proposed to the court that the power rate base of all distribution corporations (DISCOs) which includes K-Electric will be increased over three stages i.e. Rs3.50 per unit rise from July to Rs3.50 starting in August, then Rs0.91 per unit increment starting October 2022.

In response to this request, it was reported that the Nepra held an open hearing on the 20th of July and later accepted the request of the federal government. The government has not proposed an increase in the Life Line or "Protected" categories of consumers. The decision would become effective when the federal government announces that it has made the decision, according to the power regulator.

Prime Minister Shehbaz Sharif has given anticipatory approval to raise the base tariff for power by Rs7.91/unit. The base tariff may be raised to Rs29.034 / unit following the introduction of GST of 17 percent each unit.

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