NEPRA Signals Potential Increase in Electricity Prices

Lahore: NEPRA Signals Potential Increase in Electricity Prices

In a recent development, the National Electric Power Regulatory Authority (NEPRA) has hinted at a possible rise in electricity prices. This indication comes as a result of the sustained decrease in power demand, which may lead to a further increase in the quarterly adjustment. NEPRA reported a significant 12% drop in electricity demand up to February, prompting concerns about the impact on pricing.

NEPRA has urged the Ministry of Power and the Central Power Purchasing Agency (CPPA) to devise a plan to eliminate load shedding on a commercial basis. Additionally, NEPRA has highlighted the need for a 60% cap on payments in electricity tariffs, a figure that surpasses international standards. The authority has also directed the CPPA to focus on reducing the capacity payment, currently set at Rs2.75 per unit, while ensuring compliance with the legal framework.

The potential increase in electricity prices, as indicated by NEPRA, underscores the challenges faced by the power sector in Pakistan. With a decline in demand and the need to address issues such as load shedding and tariff structures, stakeholders must work towards sustainable solutions to ensure a reliable and affordable electricity supply for consumers.