NEPRA approves Rs2.56 per unit ‘Teeka’, hike for August power bills

On Thursday, the National Electric Power Regulatory Authority (NEPRA) approved an increase of Rs2.5627 per unit in electricity bills for consumers, effective from August.

This rate adjustment by NEPRA will add an estimated Rs33.45 billion to the financial burden on power consumers. When including the 18 percent General Sales Tax (GST), the total impact rises to approximately Rs39.5 billion.

This adjustment is a result of the Fuel Charges Adjustment (FCA) for June 2024. The FCA is intended to reconcile the difference between the actual cost of power generation and the rate previously charged to consumers.

The increase in costs is primarily due to the high prices of liquefied natural gas (LNG) and oil, combined with a decrease in electricity demand.

The new rate will apply to all consumer categories except for electric vehicle charging stations (EVCS) and lifeline consumers, who will be exempt from this particular increase.

Discos (Distribution Companies) had originally sought approval to impose an Rs2.63 per unit charge. They based this request on a reference fuel cost of Rs7.14 per unit for June, which ultimately escalated to Rs9.77 per unit, necessitating the increase to cover the higher fuel costs.