Power Tariff Likely to Rise by 45 Paisas for Three Months

Islamabad: Electricity prices may increase by 45 paisas per unit for three months as the National Electric Power Regulatory Authority (NEPRA) held a hearing on a federal government request for a quarterly tariff adjustment submitted by distribution companies (DISCOs) and K-Electric.

The hearing, chaired by NEPRA Chairman Waseem Mukhtar, reviewed the government’s proposal seeking approval for a 45-paisa hike under the first quarterly adjustment of the fiscal year. DISCOs have requested a total of Rs 8.41 billion in adjustments.

During the hearing, consumers objected to the proposal, noting that the Prime Minister had recently announced a temporary reduction of Rs 7.41 per unit in electricity prices, while circular debt continues to rise. They also questioned whether the new industrial and agricultural relief packages would take effect from November 1.

NEPRA Member Rafiq Shaikh remarked that with the current structure of the power sector, circular debt cannot be eliminated. Industrial consumers pointed out that they are already paying a Rs 3.23 per unit surcharge on circular debt and will now continue to bear charges on new bank-financed debt as well.

NEPRA officials observed that until line losses and power theft are reduced and recovery rates improve, circular debt will keep growing. The Power Division stated that additional losses and poor recovery performance have worsened the financial situation.

The NEPRA Authority has completed the hearing and will send its final decision to the federal government after reviewing the data and financial details.