NEPRA’s New Price Hike Will Increase Most Users’ Electricity Bill by Thousands

The National Electric Power Regulatory Authority (NEPRA) increased the power tariff by Rs. 3.99 per unit on account of fuel cost adjustment (FCA) for the month of April 2022. According to the notification, the power regulator decided to raise the tariffs after hearing a plea from the Central Power Purchasing Agency (CPPA) which sought to raise the price of power by Rs. 4.5 per unit. NEPRA, however, disagreed with that demand and approved a hike of Rs. 3.99. According to a NEPRA notification, the FCA for April 2022 will be charged with the bill of June 2022, which will be paid by all consumer categories of all 10 distribution companies, except for lifeline and K-Electric consumers. The Rs. 3.99 increase will put a burden of around Rs. 58.5 billion on consumers, including the General Sales Tax (GST) which is charged at 17%. The said adjustment shall be shown separately in the consumers’ bills based on units billed to the consumers in the month of June 2022 by the Ex-Wapda Distribution Companies (XWDISCOs). “XWDISCOs shall reflect the fuel charges adjustment in respect of April 2022 in the billing month of June 2022,” the notification read. It is worth mentioning that earlier this month, the regulatory body raised the basic power tariff by Rs. 7.91 per unit for the next fiscal year 2022-23, increasing the burden of inflation on the people of Pakistan.