The country’s power regulator has notified a Rs1.15 per unit increase in the power tariff. This move will put an additional burden of Rs22.29 billion on power consumers across Pakistan and result in further increase in commodity prices.

The National Electric Power Regulatory Authority (NEPRA) on Wednesday issued a notification announcing this hike. The regulator clarified that the increase in the price was made on account of “periodic adjustment in tariff for the 1st quarter of financial year 2023-24”.

“The decision is being sent to the federal government for intimation and action, if any, by the federal government under Proviso (ii) of Section 31(7) of NEPRA Act,” it said.

According to the NEPRA notification, the increase in electricity price by Rs1.15 per unit will be applicable to all consumers including those served by K-Electric while this hike in power price will be applicable from January 1, 2024 and will remain in effect till March 2024.

“While effecting the quarterly adjustments, the concerned DISCOs [power distribution companies] shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” it added.

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A power distribution company, often referred to as a power utility or distributor, is an entity responsible for delivering electricity from the high-voltage transmission network to end-users, such as homes, businesses, and industries.

These companies manage the infrastructure required to distribute electricity, including substations, transformers, power lines, and meters. There are ten power distribution companies in the country with K-Electric serving the country’s largest city and economic hub Karachi.

The companies had earlier filed requests with NEPRA for increase in power tariff in view of adjustments on account of capacity charges, transmission charges and market operator fee, impact of incremental units and impact of transmission and distribution losses; fuel cost adjustment and variables operation and maintenance charges for the 1st quarter of financial year 2023-24 from July to September 2023.

NEPRA on November 14, 2023 conducted a public hearing on these requests. The regulator later reserved its decision which was unveiled on Wednesday.