ISLAMABAD: In line with its regulations, National Electric Power Regulatory Authority (NEPRA) on Tuesday conducted an open hearing of the Federal Government petition, seeking a 51 paisa per unit raise in power tariff for Karachi’s consumers under quarterly adjustments.
This hike was requested by the federal government to ensure that consumers across Pakistan are charged uniform rates according to their slab-wise electricity consumption. This process is underpinned by the National Power Tariff and Subsidy Policy Guidelines 2014, which have been developed by the government and apply to all electricity consumers in the country.
Earlier, the federal government in order to maintain uniform tariff policy across the country filed a motion with NEPRA and sought 51 paisa/unit raise for power consumers of K-Electric under quarterly adjustments (QA) for 3rd quarter (January – March) of Financial year (FY) 2021-2022. And, in order to arrive at a just and informed decision the NEPRA on Tuesday conducted a hearing.
NEPRA is yet to determine the date from which this change will apply to consumer bills, which will be followed by a notification by the Government. The process of setting the electricity rates, and their application on consumer bills, rests with the regulatory authority and Government. Individual distribution companies cannot influence the process or modify the tariff unilaterally.
As per the federal government’s motion, the Authority was requested to issue a separate SoT (Schedule of Electricity Tariff) with prospective application of applicable uniform rates after incorporating tariff rationalization. Such adjustment shall be applicable on the consumption of September 2022, October 2022 and November 2022 to be recovered from consumers in November 2022, December 2022 and January 2023. Respectively, said the government’s motion.
Sources in K-Electric said that this hike was requested by the GoP in order to maintain uniform tariff policy across the country. And, the recovery period is yet to be determined by NEPRA and notified by the Government.
It is pertinent to mention that the authority had earlier determined periodic adjustment in tariff for the 3rd Quarter of FY 021-22 for DISCOs having uniform rate of Rs0.5087/kWh for three months period and same has been notified vide SRO No. 1587(1)72022 dated 23 August 2022.
In accordance with the National Electricity Policy, 2021, the Government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through incorporation of direct / indirect subsidies.
Accordingly, KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of KE, determined by the Authority consistent with the DlSCOs. The same has been approved by the Federal Government and it was decided that the same be submitted to the Authority for consideration in terms of the provisions of the Act.
