National Electric Power Regulatory Authority (NEPRA)

National Electric Power Regulatory Authority (NEPRA) Announced 20-Paise Per Unit Increase Electricity

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The National Electric Power Regulatory Authority (NEPRA) has officially announced a 20-paise per unit increase in electricity tariffs as part of the quarterly adjustment for the first quarter of the current fiscal year. This decision, reported by ARY News, imposes an additional burden of Rs1.18 billion on electricity consumers across Pakistan.

Key Details of the Tariff Increase

  1. Applicability:
    • The increase will apply for December 2024 only.
    • Lifeline and prepaid electricity consumers are exempted from this adjustment.
    • Consumers benefiting from the winter package and using extra electricity are also exempted.
  2. Previous Adjustments:
    • NEPRA had finalized the adjustment for July to September 2024 and forwarded it to the government.
    • The recovery of the final quarterly adjustment for the last fiscal year, amounting to Rs1.74 per unit, was completed in November 2024.

K-Electric’s Financial Challenges

Simultaneously, NEPRA has been addressing claims by K-Electric regarding unrecoverable dues from chronic defaulters. On December 10, 2024, NEPRA concluded its public hearing on these claims, which span the fiscal years 2017 to 2023.

Key Points Raised in the Hearing:

  • Unrecoverable Dues:
    • K-Electric highlighted an accumulated amount of Rs68 billion over a 7-year period.
    • The company stated that these amounts are essential for financial stability and were deemed unrecoverable despite significant efforts.
  • Efforts by K-Electric:
    • Measures included multiple disconnections, engagement with specialized recovery agencies, and area-specific initiatives.
    • The claims underwent strict internal scrutiny and external audits by reputable firms as per NEPRA’s requirements.
  • Impact on Karachi:
    • Consumers expressed grievances about challenges faced due to K-Electric’s inability to recover dues and its impact on residents and businesses.
  • KE’s Position:
    • K-Electric emphasized that as a private utility, it does not contribute to the national circular debt, a fact acknowledged by the World Bank and other global institutions.
    • The company asserted that rejecting legitimate claims could negatively impact its ability to fund infrastructure upgrades, essential for enhancing power supply in Karachi.

Broader Implications

The recent tariff hike and K-Electric’s financial challenges underscore broader issues in Pakistan’s power sector, including:

  • Growing financial burdens on consumers.
  • Struggles of utilities in recovering dues and maintaining cash flow.
  • The need for systemic reforms to improve efficiency and reduce losses.

Consumers and stakeholders are urged to remain updated on developments in the energy sector as NEPRA and K-Electric continue discussions on this critical matter.

For more details, visit the official NEPRA website or follow updates through credible news outlets.

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