The consumer-end tariff would climb in July, August, and October, per the specifics. However, after the federal government announces the decision, the authority’s decision will be relevant. According to a statement from NEPRA, the pricing for the fiscal year (FY) 2022–23 has been set at Rs24.82 per kilowatt hour (kWh), which is up from the previously set national average tariff of Rs16.91/kWh by 7.91 rupees.
The federal government filed a motion for the determination of a uniform consumer-end tariff after taking subsidies and surcharges for all the power distribution companies (DISCOs), as well as K-Electric, into account after the authority had already decided on the tariff increase and informed it to them.
Following the submission of an application by the federal government recommending an increase in the consumer-end tariff for electricity distribution firms including DISCOs and K-Electric, NEPRA, the authority convened a hearing on Thursday under the direction of NEPRA chairman Tauseef H. Farooqi.
The authority said in a statement that it will convey its decision to the federal government for making a notification regarding the raise even though it was keeping its options open.
The NEPRA chairman stated during the hearing on Thursday that the body had set the price while maintaining the dollar exchange rate at Rs200, which has now increased to Rs226. “NEPRA’s role is to approve the tariff while allocating a subsidy is the government’s prerogative,”
Power Division representatives, however, informed the authority that there would be no increase in the tariff for lifeline customers and the protected category of customers, explaining that the government would provide a Rs220 billion subsidy to ensure that the most recent hike did not affect at least 50% of customers.
It is important to remember that the authority had already notified the government to publish a notification in this respect after conducting a hearing and forwarding its verdict of a Rs7.9/unit raise to the Energy Ministry. A rise in fuel prices, higher capacity costs, and the effects of rupee depreciation all led to the authority’s approval of the increase.
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