The National Electric Power Regulatory Authority (Nepra) has announced a potential quarterly adjustment that could increase electricity prices by Rs1.34 per unit for three consecutive months, placing an additional Rs34 billion burden on consumers across Pakistan, including Karachi .
What Happened
Nepra has reserved its decision on applications filed by power distribution companies (Discos) for a quarterly tariff adjustment (QTA) . Sources indicate that if the decision is approved, it will impose a Rs34 billion burden on consumers, with the tariff rising by Rs1.34 per unit each month for the next three months.
A public hearing was convened by Nepra regarding the incremental tariff package, where industrial consumers demanded an immediate review of the proposal, arguing it would impose an additional financial burden of about Rs2 per unit on all consumers .
Background
The proposed quarterly adjustment comes as most major distribution companies reported a reduction in sales of around 5 percent. Nepra member Maqsood Anwar Khan suspected that excessive loadshedding may be one of the major reasons for the decline, particularly affecting regular-paying consumers .
The country’s energy sector has seen improvements in installed generation capacity, with hydel, renewable and nuclear sources now accounting for 50.8 percent of capacity compared to 45,782MW a year earlier . However, the power sector continues to face significant financial challenges, with capacity payments and debt obligations affecting the overall tariff structure .
Official Statements
During the hearing, Nepra member Amina Ahmed noted that the higher QTA impact for the April-June consumption period had now become inevitable, necessitating an urgent review of the incremental tariff package .
Naveed Qaiser, head of the Power Division’s tariff team, confirmed that a case for review of the incremental package had already been submitted to Nepra . He contested that the package had caused any damage, pointing out that industrial consumption had generally improved.
Consumer Concerns
Industrial consumers at the hearing strongly objected to the proposed tariff increase. Nepra officials also indicated that Rs14 billion demanded by Sepco may not form part of the QTA and would need to be examined separately .
What’s Next
Nepra is expected to announce its final decision after completing its review. If approved, consumers across Pakistan, including Karachi, will face higher electricity bills for three months starting from the upcoming billing cycle.
Conclusion
The proposed quarterly tariff adjustment represents a significant financial burden for consumers already facing economic pressures. As Nepra reviews the applications, the decision will have far-reaching implications for households and industries across the country.
