Govt requests Nepra’s approval for an increase in electricity rates of Rs6.51 per unit
The federal government has petitioned the National Electric Power Regulatory Authority (NEPRA) for a Rs6.51 increase in the base price for the financial year 2024–2025.
According to the publication, the government plans to raise the power purchase price from the current Rs20.60 per unit to Rs27.11 per unit.
This comes after the regulatory board last week approved an Rs2.83 per unit power tariff increase for March 20204 due to a monthly fuel adjustment.
The notification from Nepra stated that the aforementioned modification of Rs2.8372.kWh affected all consumer groups, with the exception of lifeline users, K-electric consumers, and Electric Vehicle Charging Stations (EVCS).
According to officials from the government energy ministry, the base tariff for the financial year 2024–25 could increase from the current rate of Rs29.78 to Rs36.28 per unit. This base tariff was at Rs24.82 per unit in 2022–2023 if distribution margin and adjustments from previous years are taken into account.
Additionally, they claim that if the allowable losses of 11% of Distribution Companies, surcharges, taxes, and customs are included in the bills, the end consumer tariff for domestic consumers during peak hours will increase to Rs48.51 per unit from around Rs42 per unit.
According to the CPPA appeal, the Discos plan to buy 130.876 billion power units at a cost of Rs3.589 trillion with a PPP of Rs27.11 per unit and Rs3.3 trillion with a PPP of Rs25.03 per unit in the upcoming fiscal year.
It is also anticipated that capacity payments for the Financial Year 2024–2025 would increase to Rs2.278 trillion, primarily due to the addition of 1,002 megawatts from the three projects in 2024.
On November 30, 2024, the 870 MW Sukhi Kinari Hydro plant will begin operations. On October 11, 2024, the 100 MW Zorlu Solar Power plant will be commissioned. On August 11, 2024, the 32 MW Shahtaj Sugar Mill Limited will begin operations. The capacity payments of Rs2.278 trillion will go toward the Rs17.42/unit cost of power.
Nonetheless, the current capacity payments amount to Rs1.9 trillion, with the final customers footing the bill at Rs14.09 per unit for power.
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