Electricity tariff likely to increase by Rs1 per unit from next month

Electricity consumers across Pakistan may face higher power bills from next month as electricity distribution companies have approached the National Electric Power Regulatory Authority (NEPRA)

ISLAMABAD: Electricity consumers across Pakistan may face higher power bills from next month as electricity distribution companies have approached the National Electric Power Regulatory Authority (NEPRA) seeking a quarterly tariff adjustment.

According to sources, the proposed adjustment could result in an increase of around Rs1 per unit in electricity prices during the upcoming quarter.

The distribution companies have submitted their adjustment request to NEPRA, which will examine the figures and determine the impact on consumers under the applicable quarterly tariff mechanism.

Sources said the expected increase is linked to the expiry of the existing quarterly adjustment relief. Under the current arrangement, consumers are receiving a relief of Rs1.99 per unit, which is scheduled to expire at the end of the current month.

With the relief ending, electricity tariffs are expected to rise for consumers across the country from next month, subject to NEPRA’s approval of the proposed adjustment.

The quarterly tariff adjustment mechanism is used to pass on changes in electricity generation costs and other relevant expenses to consumers. Depending on the regulator’s assessment, the resulting adjustment can either increase or reduce electricity bills.

The proposed increase is likely to add to the financial burden on households and businesses already facing elevated electricity costs. Consumers are now awaiting NEPRA’s decision, which will determine the final impact on electricity tariffs in the upcoming quarter.

NEPRA is expected to review the distribution companies’ submissions before announcing its decision. The final adjustment may differ from the amount initially sought by the power distribution companies following the regulator’s scrutiny of the data and applicable costs.