Electricity Tariffs Set to Rise by Rs. 0.51 per Unit in January 2025
Electricity tariffs for January 2025 will increase by Rs. 0.51 per unit compared to December 2024. This adjustment aligns with the federal government’s efforts to rebase the national tariff structure and optimize peak and off-peak timings.
Despite lower-than-expected fuel costs for power generation, which have reduced production expenses compared to the peak summer season, the tariff hike stems from changes in the fuel cost adjustment (FCA). The Central Power Purchasing Agency (CPPA) has proposed a negative FCA of Rs. 0.63 per unit for November consumption, replacing the Rs. 1.14 per unit negative FCA applied in December. Consequently, the overall tariff for January will rise.
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During a hearing chaired by NEPRA Chairman Waseem Mukhtar, significant inefficiencies in power companies were brought to light. These included an eight-month delay in the Lahore-North grid projects and the underutilization of the Matiari-Lahore Transmission Line, which forces consumers to bear the cost of unused capacity.
The CPPA also revealed that partial load adjustment charges (PLAC) increased from Rs. 47 billion in 2023 to Rs. 56 billion in 2024. This rise is attributed to unaffordable tariffs and a growing shift toward solar energy. NEPRA has called for a technical study to analyze shifting demand patterns and an inquiry into delayed transmission projects.
