Nepra Approves Rs1.743/unit Hike for Three Months to Recover Rs43.23 Billion

The National Electric Power Regulatory Authority (Nepra) has approved an additional charge of Rs1.743 per unit for the next three months, starting September 2024. This move allows distribution companies and K-Electric to recover Rs43.23 billion through quarterly adjustments for the fourth quarter of fiscal year 2023-24 (April-June).

The increased tariff will impact both state-owned distribution company customers and K-Electric users, intensifying the financial strain on households already dealing with soaring energy costs.

A significant portion of the recovery, Rs21.253 billion, is allocated for capacity charges—payments to independent power producers (IPPs) to maintain generation capacity, irrespective of actual consumption. Another Rs7.368 billion will be collected as system usage charges and market operator fees, Rs11.23 billion to cover transmission and distribution (T&D) losses, and Rs3.5 billion for variable operation and maintenance costs.

Adding to the burden, an 18% GST on the total recovery amount will further increase the total amount by Rs7.78 billion, pushing the total to Rs51 billion, to be recovered from consumers.