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The National Electric Power Regulatory Authority (Nepra) has approved an increase in the electricity base tariff for domestic consumers by up to Rs7.12 per unit. This approval raises the base tariff for domestic consumers to Rs48.84 per unit. Nepra’s 52-page decision also covers tariff hikes for commercial, general services, bulk, and agricultural consumers. The decision has been forwarded to the federal government for implementation, proposing a uniform tariff for all power distribution companies (Discos) and K-Electric.
The new approval allows the government to notify individual decisions for each XWDISCO and includes the Power Purchase Price (PPP) forecast for the fiscal year 2024-25, dated June 14, 2024.

Electricity Prices Surge as Nepra Approves Federal Government’s Tariff Increase

For domestic consumers, the base tariff increase varies based on usage:

  • Consumers using up to 200 units per month will be exempt from the hike for three months, from July to September 2024.
  • Consumers using 201 to 300 units per month will see a new rate of Rs34.26 per unit, reflecting a Rs7.12 increase.
  • Consumers using 301 to 400 units will see an increase of Rs7.02, bringing the rate to Rs39.15 per unit.
  • Consumers using 401 to 500 units will face a hike of Rs6.12, with the rate reaching Rs41.36 per unit.
  • For usage of 501 to 600 units, the rate will be Rs42.78 per unit, an increase of Rs6.12.
  • For 601 to 700 units, the rate will be Rs43.92 per unit, also an increase of Rs6.12.
  • For those using more than 700 units, the rate will be Rs48.84 per unit, after a Rs6.12 increase.

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Additionally, electricity costs will increase according to tax slabs. Lifeline consumers using up to 50 units per month will continue to pay Rs3.95 per unit, and those using 51 to 100 units per month will pay Rs7.74 per unit.

Electricity Bills Set to Rise: Nepra Approves Significant Tariff Increase”

Commercial consumers will see their base tariff increase by Rs8.04, reaching Rs77.15 per unit starting in July. Agricultural consumers will experience a hike of Rs6.62 per unit, bringing their rate to Rs46.83 per unit. General services will be charged Rs61.03 per unit after a Rs6.98 increase, and bulk consumers will pay Rs59.96 per unit after a Rs5.51 increase. However, the base tariff for industrial consumers remains unchanged.

This increase in power rates follows the Ministry of Energy’s request to eliminate government subsidies, except for lifeline, industrial, and agricultural consumers, to achieve financial sustainability in the energy sector by recovering the full cost of service through an efficient tariff structure.