Electricity Tariffs Set to Rise in November Despite Lower Fuel Costs

c

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) announced on Wednesday that electricity rates for ex-Wapda distribution company (Disco) consumers will increase by 15 paise per unit in November, despite a drop in fuel costs. During a public hearing on fuel cost adjustments (FCA) for September, a Nepra case officer explained that while the FCA was reduced by 71 paise per unit, an earlier reduction of 86 paise per unit expired, resulting in a net rise.

Nepra Chairman Waseem Mukhtar, presiding over the hearing, noted that despite the cost relief, power generation had fallen by 9.9% year-on-year in September, with demand decreasing due to high tariffs and reduced consumer purchasing power. September’s fuel cost was Rs9.09 per unit, up from Rs7.62 in the same month last year. Hydropower made up 39% of generation, while LNG and nuclear energy fell to 16.3% and 13%, respectively.

Despite consumer relief efforts, electricity costs remain high, driven by elevated fuel prices for LNG and coal-based power, further compounded by capacity charges, system losses, and imported energy costs. If approved, the FCA increase will apply for a single month, exempting domestic consumers using up to 300 units.

Story by Khaleeq Kiani

Related posts