NEPRA plans to raise electricity tariff from July 1, 2024

The National Electric Power Regulatory Authority (NEPRA) has recently revealed plans to raise the basic electricity tariff, resulting in an additional cost for consumers starting from July 1, 2024. The new tariff will see an increment of Rs5.72 per unit, pushing the current rate of Rs29.78 to Rs35.50 per unit.

This adjustment is primarily driven by the surge in capacity charges, which currently amount to Rs18.10 per unit, constituting 51% of the total cost. Consequently, the total capacity payment is expected to soar to approximately Rs2.091 trillion for the fiscal year 2025.

NEPRA has submitted this proposal for tariff adjustment to the federal government for final approval. The government will carefully consider whether to implement the increase immediately or opt for a gradual phase-in approach over time.

The impending rise in electricity tariffs, as proposed by NEPRA, reflects the ongoing challenges in the energy sector. Consumers should be prepared for the upcoming changes in electricity costs and stay informed about the government's decision regarding the implementation timeline.