Nepra Hikes Power Tariff for Consumers: K-Electric Unit Rate List 2024
Islamabad, Pakistan – The National Electric Power Regulatory Authority (NEPRA) has announced a significant update to the electricity tariff, affecting consumers across Pakistan. This decision aligns with the directive issued by the Economic Coordination Committee (ECC).
So, what is the new k-electric unit rate list for 2024? As per the notification, there will be an increase of PKR 1.52 per unit in electricity charges, a move that will have broad implications for energy consumers.
New K Electric Tariff Increase
Starting from December 2023, consumers will notice the revised charges reflected in their monthly electricity bills. This increase will continue to be applicable until November 2024. The increment of Rs. 1.52 per unit represents a substantial change in the electricity pricing structure, directly impacting the monthly expenses of households and businesses.
Tariff Adjustments and Hearing Outcomes
During the hearing, the Ministry of Energy (MoE) representative proposed recovering the quarterly adjustments within three months, initially planned from December 2023 to January 2024. However, considering the billing cycle had already begun for December 2023, the recovery period was adjusted to span from January to March 2024.
Detailed K electric Rate Changes
The new KE tariff structure includes a rate of PKR 0.4689 per unit for the months of April, May, and June 2023, and a rate of PKR 1.2489 per unit for July, August, and September 2023.
These adjustments will be recovered from K-Electric consumers from January to March 2024. K-Electric is expected to account for these adjustments in its subsidy claims, with the federal government considering these amounts in processing the company’s subsidy claims.
Additional Burden on Karachiites
Following the latest increase of PKR 1.72 per unit, consumers in Karachi will face an additional burden of up to PKR 9.05 per unit during the first quarter of 2024. This tariff for electricity bill figure includes PKR 6.15 per unit from four quarterly adjustments and a PKR 1.52 per unit surcharge. After including the 18% General Sales Tax, the total increase amounts to PKR 9.05 per unit.
Previous and Ongoing Tariff Hikes
In October, the Power Division announced an average hike of PKR 3.28 per unit for the consumers of Distribution Companies (DISCOs) and K-Electric. This increase, effective from October 2023, will continue for six months until March 2024.
Additionally, the federal government notified an increase of PKR 1.1502 per unit for the first quarterly adjustment (July-September) of the fiscal year 2023, to be charged by K-Electric from January to March 2024. Alongside this, a PKR 1.52 per unit surcharge, effective from December 2023, will continue for 12 months until November 2024.
Conclusion
The K-Electric unit rate list for 2024 marks a notable shift in Pakistan’s energy sector. However, the tariff hikes and adjustments, as announced by NEPRA and the federal government, present a challenging scenario for K-Electric’s consumers. While these increases are part of the regulatory framework and economic adjustments, they pose significant implications for household budgets and the operational costs of businesses, especially in the industrial sector. The focus now shifts to how consumers and industries in Karachi will adapt to these changes in the energy pricing landscape.
