NEPRA to Impose Rs23 Billion Charge on Power Consumers

Power consumers in Pakistan may soon face an additional financial burden of approximately Rs23 billion due to a recent development by the National Electric Power Regulatory Authority (NEPRA). NEPRA has completed a hearing on a request for Fuel Charges Adjustment (FCA) for electricity consumed in March 2024. While NEPRA has reserved its decision on the matter, it is expected that they will approve the collection of Rs23 billion from consumers through the May 2024 electricity bills.

The Central Power Purchasing Agency (CPPA) had requested an increase in electricity prices by Rs2.9402 per kilowatt hour (kWh) under the FCA for March 2024. During the hearing, NEPRA officials noted a decrease in electricity demand, with consumers shifting towards solar energy due to high electricity costs. The CPPA reported a total electricity generation of 8,023 GWh in March 2024, with various sources contributing to the power production.

NEPRA highlighted that consumers could have saved up to Rs580 million if electricity had been generated through the Guddu Combine Power Plant. The decrease in power demand was also noted by officials from the National Power Control Center and the National Transmission and Despatch Company.

It is important to mention that the monthly fuel charges adjustment will impact all DISCO consumers except for those of K-Electric, lifeline users, and electric vehicle charging stations. Previous adjustments in February and January had already seen increases in electricity prices, further adding to the financial strain on consumers.

The potential increase in electricity bills for power consumers in Pakistan highlights the ongoing challenges in the energy sector. With a focus on scrutinizing facts and figures, NEPRA's decision on the Fuel Charges Adjustment will have significant implications for consumers and the overall energy landscape in the country.