NEPRA Hikes Power Tariff By Rs. 3.25 Per Unit

June 4, 2024Zayn0

The National Electric Power Regulatory Authority (NEPRA) announced on Saturday that there will be a Rs. 3.25 per unit rise in electricity prices as part of the quarterly fuel adjustment. June, July, and August consumer bills will be affected by this hike. Let’s discuss this news.

Notification of the Federal Government 

The federal government has been informed by the regulator of its decision to raise the power tariff.

Previous Tariff Reduction Requests 

Despite prior requests to decrease the population’s burden of power costs, this increase has occurred.

Tariff Adjustments Every Quarter 

The three-month periods of the quarterly rate revisions made by NEPRA are displayed on power bills. The current fiscal year (2023–24) bills for April, May, and June included an Rs. 2.75 second quarter adjustment.

Reduction in the Production of Power 

The country’s power generation fell by 2.4 per cent year over year to 101.089 gigawatt-hours (GWH) in 10MFY24, and by 13.7 per cent year over year to 8,639 GWh in April 2024.

Month-on-Month Growth From 8,023 GWh in March 2024, the country’s electricity generation grew by 7.7% month over month (MoM).

Fuel Prices for Power Generation 

The average fuel cost for power generation in April 2024 was Rs. 9.21 per unit, a 10.1% YoY decrease. In April 2024, the amount of power generated in real terms fell short of the reference generation by 20.4 per cent.

Effects On The Power Industry 

The reduction in power output and the rise in fuel prices are signs of larger problems facing Pakistan’s power industry. The move by NEPRA to raise the rate may have been required to maintain the industry’s financial stability, but it also emphasizes the need for long-term fixes to deal with the underlying causes of the power problem.

In Summary 

At a time when the nation is struggling with a drop in power generation and rising fuel expenses, NEPRA decided to raise the power tariff by Rs. 3.25 per unit. Although the regulator must guarantee the electricity industry’s financial stability, it is impossible to overlook how this rise would affect customers. To lessen the load on the populace and guarantee the supply of reasonably priced and dependable electricity, the government must investigate other options.

 

 

 

Zayn

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