The National Electric Power Regulatory Authority (NEPRA) has approved a Rs2.56 per unit increase in electricity tariffs, adding over Rs33 billion in additional charges to be collected from consumers in August. This hike, part of the monthly fuel cost adjustment (FCA) for June, is the second consecutive increase following a Rs3.33 per unit rise in May.
The decision, announced on Thursday, will impact millions of electricity users across Pakistan, with the exception of lifeline consumers and K-Electric users, who will not be affected by this tariff adjustment. The hike follows a request by the Central Power Purchasing Agency (CPPA) for a Rs2.63 per unit increase. After a public hearing on July 31, NEPRA approved a slightly lower adjustment of Rs2.56 per unit.
This latest increase has sparked concerns among consumers, who have already been facing inflated electricity bills. A recent NEPRA inquiry revealed that many users were charged higher rates than their actual consumption warranted during the April-June period, due to losing their eligibility for reduced rates and slab benefits. Lifeline consumers, who use 51-100 units per month, and those in the protected category, using up to 200 units, were particularly affected, as they were pushed beyond their monthly ceilings, resulting in significantly higher bills.
The tariff hike comes at a time of growing frustration over the rising cost of living in Pakistan, with electricity bills becoming a significant burden for households and businesses alike. Exporters have expressed concerns that the increasing energy costs are making it difficult to fulfill export orders, while domestic industries have already passed the additional costs onto consumers through higher retail prices.
In response to mounting criticism over capacity payments to independent power producers (IPPs), the government has established a task force to address financial and operational issues in the power sector. The task force, co-chaired by former caretaker energy minister Muhammad Ali, has been tasked with reviewing the IPP contracts and recommending a forensic audit. The government hopes this review will address inefficiencies and reduce the financial burden on consumers.
Prime Minister Shehbaz Sharif has appointed Muhammad Ali as a special assistant on energy, reflecting the urgency with which the government is approaching the energy crisis. The task force is expected to present its findings within 30 days, a deadline that will be closely watched by both the public and the industry.
