According to the National Electric Power Regulatory Authority (Nepra) on Tuesday, an increase in energy tariffs of Rs3.07 per unit has been approved, and this increase would be applicable to all consumers of all power distribution firms.
The regulator stated in a notification that “the […] adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of October 2023 in the billing month of December 2023.”
Nepra has informed the rise due to fluctuations in fuel prices, as stated in the notification. This would affect millions of consumers of electricity distribution firms (Discos), who are sick of inflation.
The users of Karachi-Electric (KE) will not be affected by the hike. Furthermore, the warning stated that lifeline customers and electric vehicle charging stations (EVCs) will not be harmed by the hike.
Pakistan, a cash-strapped country striving to reduce its circular debt and comply with IMF requirements, has seen a steady increase in power prices.
In order for the South Asian country to get vital funding that prevented the government from potentially going into default on its debt obligations, the IMF set down a number of requirements, including an increase in gas and electricity prices.
The most recent increase follows shocking Nepra findings that showed millions of customers were being overcharged by KE and other electricity providers.
According to a statement released by the electricity regulator, “Legal proceedings against all Distribution Companies including KEL under NEPRA Fine Regulations, 2021 for violation of the provisions of NEPRA Act, CSM and tariff terms & conditions etc.”
The authorities received complaints from all around Pakistan in July and August about the distribution companies charging consumers high, inflated, and incorrect bills, and they took these issues “very seriously.”
The electricity regulator conducted extensive hearings in response to the accusations, and it was discovered that photos of “meter readings are either invisible or purposefully not taken.” Comparably, it has been reported in certain circumstances that monthly meter readings are being taken longer than the 30-day billing cycle. This has led to the improper or exaggerated charge of upper slab bills to the consumer(s) with fewer usage, hence altering their category from protected to un-protected.
The committee discovered that in July, 5.7 million customers of Multan Electric Power Company (Mepco) and about 1.2 million customers of Gujranwala Electric Power Company (Gepco) were taxed for more than 30 days of the billing cycle.
Similar figures were reported by Hyderabad Electric Supply Company (Hesco) for the month of July, Lahore Electric Supply Company (Lesco) for both months, and Faisalabad Electric Supply Company (Fesco) for August, totaling more than 800,000.
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