NEPRA to rule new higher fixed charges for electricity

NEPRA to rule new higher fixed charges for electricity

NEPRA to rule new higher fixed charges for electricity

NEPRA will start fixed charges on July 1, 2024. These charges range from Rs. 200 to Rs. 1,000 per month. Residential consumers will have to pay these new fees.

Residential Consumers

Units consumed (GWh) Fixed Charge(s)
301-400 units/month Rs. 200/month
401-500 units/month Rs. 400/month
501-600 units/month Rs. 600/month
601-700 units/month Rs. 800/month
Above 700 units/month Rs. 1,000/month
ToU meter users Rs. 1,000/month

 

Commercial Consumers

Load less than 5kW Rs. 1,000 per month
Load of 5kW and above increased from Rs. 500 to Rs. 2,000 per month

 

Industrial Consumers

B1 category (up to 25kW, ToU metering) Rs. 1,000 per month
B2 category (up to 500kW) increased from Rs. 500 to Rs. 2,000 per month
B3 category (5,000kW) increased from Rs. 460 to Rs. 2,000 per month
B4 category (all loads) increased from Rs. 440 to Rs. 2,000 per month

 

Electricity costs have two parts; fixed and variable. Fixed charges make up 72 percent. Variable charges are 28 percent. Fixed charges only bring in 2 percent of revenue. Variable charges bring in 98 percent. NEPRA wants to change this. The new fixed charges will help.

The government will talk to NEPRA about a uniform tariff for FY25. NEPRA has already decided to raise the base tariff. It will go up to Rs. 35.50 per unit. It was Rs. 29.78 per unit in FY24. This new tariff will help raise more money.

The power sector will get over Rs. 3.763 trillion in FY25. This is because of the new tariff structure. The changes will affect all residential consumers. They will see the new charges on their bills. This aims to balance fixed and variable charges better. NEPRA hopes this will improve revenue.

To read our blog on “NEPRA approves an extra burden of Rs 40 Bn. on consumers,” click here

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