Electricity Consumers Face Rs 310 Billion Burden as Power Tariffs Set to Rise in 2024-25
Preparations are underway to impose an additional burden of over Rs 310 billion on electricity consumers.
As per details, the electric power regulator will decide on the Central Power Purchasing Agency (CPPA) plea tomorrow, seeking a hike in the base tariff for the FY2024-25.
CPPA has presented seven scenarios for power purchase prices, with an estimated range of Rs 25.03 to Rs 27.11 per unit.
After approval, the burden of power purchase prices is expected to reach Rs 3.58 trillion, putting an additional strain on electricity consumers.
Yesterday, it was reported that power consumers are likely to face a significant increase in tariff of Rs 3.49 per unit on account of fuel charges adjustment (FCA) for April 2024.
On behalf of power distribution companies (DISCOs), the Central Power Purchasing Agency (CPPA) submitted an application to the National Electric Power Regulatory Authority (NEPRA) seeking an increase in the power tariff by Rs 3.49 per unit.
Following this request, NEPRA has scheduled a public hearing on May 30, 2024. This adjustment will be reflected in the consumers’ June bills if approved.
It is pertinent to mention here that the circular debt of Pakistan’s power sector has soared to Rs 2,635 billion till January 2024.
According to a report released by the power division, the hike in circular debt continued despite the massive increase in power tariffs and fuel adjustments.
The circular debt increase was recorded at Rs2,310 billion till June 2023, showing an increase of Rs325 billion during the seven months (January 24).
