Connect with us

Business

Nepra notifies massive increase in power tariffs by up to Rs7.50

Published

1 year ago

on

  • Govt application seeking hike in tariffs approved after public hearing.
  • Despite increase, govt “would be picking up subsidy of Rs158 billion”.
  • Cabinet okayed massive increase in base tariff by up to Rs7.50 per unit. 

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has notified a massive increase in the base tariffs of electricity by up to Rs7.50 per unit at the request of the federal government.

In a notification issued on Tuesday, the power regulatory authority said the new tariffs would be effective from July 1, 2023.

It further said that the federal government’s application seeking the hike in tariffs was approved following a public hearing on the matter held on Monday (July 24) at Nepra Tower Islamabad.

The power ministry during the hearing submitted that the increase requested through the “Instant Motion” is within the overall revenue requirement determined by Nepra and despite the proposed increase, the government would be picking up a subsidy of Rs158 billion, the notification added.

661123220-Decision-of-the-Authority-in-the-Matter-of-Motion-Filed-by-the-Federal-Government-Consumer-End-TariffDownload

The federal cabinet last Saturday gave a go-ahead to a massive increase in the base tariff of electricity by up to Rs7.50 per unit against the national average tariff determination of Rs4.96 by the power regulator.

The approval was given by the cabinet via circulation summary, sources told Geo News and a request has been submitted to Nepra.

A day earlier, Prime Minister Shehbaz Sharif said that lifeline (up to 100 units) and protected category of consumers (101-200 units per month) would be exempted from the recent massive increase in the power tariff.

Earlier this week, the regulator also hiked the tariff to increase revenue collection for the loss-making power distribution companies (Discos) during the current fiscal year.

The federal government sought approval from the cabinet, adjusting different rates of increases for various consumer categories through cross-subsidy, though without affecting the overall revenue requirement.

According to a Nepra statement, the revised national average tariff for the 2023-24 fiscal year has been determined at Rs29.78 per unit kWh, which is Rs.4.96 per unit higher than the previously determined national average tariff of Rs24.82.

While the regulator cited the rupee’s devaluation, high inflation and interest rates, the addition of new capacities and overall low sales growth as reasons behind the increase, it was actually hiked to meet one of the conditions set by the International Monetary Fund (IMF) of introducing structural reforms in the energy sector.

However, the applicable tariff would be much higher after including surcharges, taxes, duties and levies, besides monthly and quarterly adjustments.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

Published

2 days ago

on

By

The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

Continue Reading

Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

Published

2 days ago

on

By

The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

Continue Reading

Business

Discos report losses of Rs239 billion.

Published

2 days ago

on

By

When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

Continue Reading

Trending