The authority says that under the existing structure of electricity distribution companies, it is not feasible to provide relief to consumers.
LAHORE: ( The National Electric Power Regulatory Authority (NEPRA) on Wednesday approved an increase of Rs5.40 per unit in the power tariff as part of its quarterly adjustment.
The authority said that under the existing structure of electricity distribution companies, it is not feasible to provide relief to consumers.
It's important to note that this newly approved tariff will not be enforced on lifeline and K-Electric consumers.
The decision follows NEPRA's review of a request made by distribution companies to raise the tariff by Rs5 per unit. This application was submitted for the fourth quarter adjustment of the fiscal year 2022-23. Among the distribution companies, FESCO had proposed an increase of Rs23.49 billion, GEPCO Rs16.13 billion, while HESCO and IESCO had each requested a raise of Rs9 billion.
LESCO's proposal aimed at passing on a burden of over Rs31 billion to consumers, while MEPCO sought an increase of Rs27 billion, PESCO Rs9 billion, QESCO Rs7 billion, SEPCO Rs5 billion, and TESCO requested a raise of Rs4 billion.
According to the NEPRA case office, the approved increase will be reflected in the bills for the months of September, October, and November. This means consumers will bear an additional burden of Rs5.40 per unit during this period.
Distribution companies (DISCOs) argued in their application that their revenue has been adversely impacted due to a decline in industrial demand. For instance, LESCO faced a significant shortage of three billion units of electricity attributed to climate change and industrial shutdowns. HESCO also experienced a rise in capacity charges due to industrial closures and reduced demand.
Presently, DISCOs are dealing with around 350,000 pending connections. These companies clarified that due to the decrease in demand and challenges in bill recovery, surcharges amounting to Rs7.91 had been implemented, as confirmed by the Central Power Purchasing Agency.
