The federal government is gearing up to implement a new adjustment in electricity rates, potentially resulting in a significant hike of Rs.5.62 per unit, placing an additional burden on the public.
Insiders familiar with the matter revealed that the Central Power Purchasing Agency (CPPA) has formally approached the National Electric Power Regulatory Authority (NEPRA), seeking approval for a Rs.5.62 per unit increase in electricity prices. This request, submitted in December, is linked to the fuel price adjustment.
NEPRA is slated to conduct a hearing on the CPPA’s request on January 31. If the proposed increase gets the green light, consumers might have to bear the brunt of an estimated Rs.49 billion.
It’s essential to acknowledge that electricity consumers are already grappling with challenges due to a surge in fuel price adjustments, soaring up to Rs.8.56 per unit. This exacerbates the impact of escalating prices on consumers.
Recent reports indicate that the electricity bills for January carry an additional burden of Rs.4.13 per unit, imposed as part of the monthly fuel adjustment for November 2023. With consumers already contending with a basic tariff exceeding Rs.50 per unit, the introduction of additional burdens for separate monthly and quarterly adjustments in this month further compounds their financial strain.
The recovery process for this three-month adjustment is anticipated to continue until March 2024. In the adjustment for January to March 2024, consumers will face an extra charge of Rs.1.15 per unit.
As the government contemplates yet another adjustment in electricity rates, the public remains on edge, grappling with the cumulative impact of successive increases in electricity costs. The upcoming NEPRA hearing on January 31 will play a crucial role in determining the financial burden that consumers will have to bear in the near future.