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NEPRA Introduces New Surcharge Slabs for Late Electricity Bill Payments

December 15, 2024 by pescobill Leave a Comment

The National Electric Power Regulatory Authority (NEPRA) has recently rolled out a revised system for imposing surcharges on late electricity bill payments. This new system introduces surcharge slabs that vary depending on how late the payment is made. The move aims to encourage consumers to pay their bills on time while offering a fairer penalty structure for slight delays.

This article provides a detailed breakdown of NEPRA’s new policy, its implications for consumers, and how the shift from a flat surcharge to a slab-based model could benefit the public.

Understanding NEPRA’s New Policy

The new surcharge slab system is designed to replace the previously rigid late payment penalty. Instead of imposing a flat 10% surcharge on all late payments, NEPRA has introduced a tiered structure to ensure fairness. This policy reflects NEPRA’s commitment to improving consumer convenience and promoting timely payments.

Breakdown of the Surcharge Slabs

First Slab: Payments within 3 Days After Deadline

Under the first slab, consumers who pay their electricity bills within three days after the due date will be charged a 5% surcharge. This moderate penalty provides some leniency for minor delays.

Second Slab: Payments After 3 Days of Deadline

For consumers who delay their payments beyond three days after the deadline, a 10% surcharge will apply. This aligns with the surcharge rate in the previous system but only affects those with longer delays.

Key Differences from the Previous Policy

Under the old policy, a flat 10% late payment surcharge (LPS) was imposed regardless of the delay duration. The new system introduces a more lenient approach, charging only 5% for delays of up to three days. This change reflects NEPRA’s focus on fairness and consumer convenience.

Implications for Consumers

The revised policy is expected to have mixed effects on consumers. For households and businesses that occasionally miss deadlines by a small margin, the new system offers significant relief. However, for chronic late-payers, the penalties remain the same or could even escalate. Additionally, the focus on online payment systems could streamline the process, making it easier for consumers to avoid surcharges altogether.

Role of Online Electricity Bill Payments

As part of the new system, NEPRA has introduced online bill payment options for Lahore Electricity Supply Corporation (LESCO) consumers. This development is expected to improve accessibility and convenience. By enabling consumers to pay their bills digitally, NEPRA aims to reduce the prevalence of late payments.

Steps to Pay Bills Online

  1. Visit the PESCO website or mobile app.
  2. Enter your customer details to access your bill.
  3. Choose a payment method (credit/debit card, bank transfer, etc.).
  4. Confirm and complete the payment.

Timeline and Implementation

The new surcharge slab system has been introduced for LESCO consumers and is expected to expand to other regions soon. Consumers should stay informed about these changes and adjust their payment schedules accordingly.

Challenges and Concerns

While the new policy brings benefits, it may also face challenges. For instance, not all consumers are familiar with online payment systems, potentially leading to delays or confusion. Additionally, the slab-based surcharges might require clearer communication to ensure widespread understanding.

NEPRA’s Vision for Future Payment Systems

This policy is part of NEPRA’s broader effort to modernize the electricity payment system in Pakistan. By encouraging timely payments and reducing penalties for minor delays, the authority aims to foster a more consumer-friendly environment.

Consumer Awareness and Education

To ensure the success of this policy, NEPRA and LESCO need to invest in consumer education. Workshops, social media campaigns, and clear communication materials can help consumers understand the new system and take advantage of online payment platforms.

Benefits of the Slab-Based Surcharge System

The new system offers several advantages:

  • Fairness: Penalties are proportional to the delay duration.
  • Incentives: Consumers are encouraged to pay sooner to avoid higher charges.
  • Convenience: Online payment options make it easier to meet deadlines.

How to Avoid Surcharges

To avoid unnecessary surcharges, consumers should:

  • Set reminders for bill payment deadlines.
  • Use online platforms for quick and hassle-free payments.
  • Request deadline extensions if needed through the revenue department.

International Comparisons

Globally, many countries employ similar slab-based penalty systems for late utility payments. For instance, the UK and Australia use proportional penalties to promote timely payments while minimizing undue financial strain on consumers.

Public Reaction and Feedback

Initial feedback on NEPRA’s new policy has been mixed. While many appreciate the reduced penalties for short delays, some are concerned about the clarity of the implementation process. NEPRA has encouraged consumers to share their feedback to refine the system further.

 

FAQs

1. What is the new surcharge policy by NEPRA?
NEPRA has introduced a slab-based surcharge system where penalties vary depending on how late the payment is made.

2. How does the 5% surcharge slab work?
Consumers who pay their bills within three days after the deadline will face a 5% surcharge.

3. Can I pay my PESCO bill online?
Yes, PESCO consumers can now pay their bills online through the official website or app.

4. What happens if I pay my bill after three days of the deadline?
A 10% surcharge will apply to bills paid more than three days after the deadline.

5. Is the new policy applicable nationwide?
Currently, the policy is implemented for PESCO consumers, with plans to expand to other regions.

 

Filed Under: Blog

NEPRA Strikes Again with June’s FCA Power Hike! PESCO BILL

August 12, 2023 by pescobill Leave a Comment

In a proclamation that has stirred both curiosity and concern, the National Electric Power Regulatory Authority (NEPRA) has granted its imprimatur to an escalation in the cost of electrical energy by an increment of up to Rs 2.31 per unit. This augmentation, denoted as the fuel charge adjustment (FCA) for the month of June in the year 2023, has invoked discourse on the intricate balance between intricacy and diversity, elucidated respectively as “perplexity” and “burstiness,” within textual compositions.

The complex calculus underlying the provisioning of electrical power unto consumers entails scenarios wherein the price outpaces the quantum invoiced to patrons over a stipulated span. This precipitates the necessity for power transmission enterprises, known as distribution companies (DISCOs), as well as the enigmatic K-Electric entity, to proffer petitions to the overseeing agency, beseeching reparation for the differential magnitude — recognized as the FCA. The accrual of this sum is exacted from end-users in subsequent months, delineating an intriguing interplay of temporal dynamics.

An entwined confluence of interests has yielded NEPRA’s edict, manifesting as a corollary of entreaties tendered by the Central Power Purchasing Agency (CPPA), acting as an envoy on behalf of DISCOs and the entity KE. The former supplicated for a rise of Rs 1.88 per unit for the beneficiaries under their purview, whilst the latter, more fervent in its plea, besought a substantial elevation amounting to Rs 2.34 per unit, pertaining to the valuation of energy as designated by the FCA for the illustrious month of June in the year 2023. The deliberative process engendered a verdict wherein the augmentation accorded was slightly ameliorated, yielding an increment of Rs 1.81 per unit for the DISCOs’ clientele, juxtaposed with a corresponding enhancement of Rs 2.31 per unit, an equal boon for the KE’s congregation of energy consumers.

The ramifications of this burgeoning tariff are projected to be inscribed upon the annals of consumers’ fiscal dispositions, precipitating perturbation amid the ranks of energy end-users. The symphony of augmenting financial commitments resonates discordantly with a populace already ensnared within the tentacles of escalating economic vicissitudes. This orchestration of monetary encumbrances, encompassing vital sustenance commodities, the exorbitant pantheon of petroleum products, and the nebulous realm of energy expenditures, has augmented the pre-existing burden borne by the masses.

It warrants elucidation that, in the implementation of the FCA, NEPRA’s behest to DISCOs and KE, is the unwavering adherence to legal dicta, irrespective of the agency’s definitive mandate.

The edict in question has cast a prism upon the intricate dialectic encompassing consumers’ fiscal equilibrium, undergirded by the backdrop of spiraling energy costs. The population at large finds itself ensnared within the throes of perturbation, as the specter of tariff escalation encroaches upon the precincts of domestic budgetary paradigms. This confluence of events is rendered particularly ominous against the backdrop of a beleaguered economy, wherein inflation’s relentless march engenders visceral hardships, further obfuscated by the aegis of pervasive affluence.

Consumers are poised to behold the visceral reverberations of this tariff escalation embedded within the corpus of their monthly financial ledgers, as the succeeding month unfolds its temporal tapestry. This juncture serves to underscore, with a flourish of emphasis, the symbiotic tightrope walk betwixt the steadfast provisioning of electrical edification and the sanctified pledge of universal accessibility.

Filed Under: Blog

Nepra Approves Rs4.96/kWh Increase in National Average Power Tariff for FY2023-24

July 29, 2023 by pescobill Leave a Comment

Nepra approves Rs4.96 per unit hike in national average tariff for current fiscal year

The National Electric Power Regulatory Authority (Nepra) has given its green light on Friday to a significant escalation in the national average power tariff for the current fiscal year, resulting in an additional Rs4.96 per unit.

As revealed in an official press release by the power regulator, “The revised national average tariff for FY2023-24 stands at Rs.29.78/kWh, marking an increment of Rs.4.96/kWh compared to the previously determined national average tariff of Rs.24.82/kWh.”

The factors contributing to this tariff hike encompass a range of influences, including sluggish sales growth, rupee devaluation, soaring inflation, high interest rates, and the incorporation of new capacities.

Upon finalizing the tariffs, Nepra communicates the details to the federal government for the purpose of filing a uniform tariff application. Following this, Nepra calculates the uniform tariff, taking into account the government’s communicated subsidy and surcharge amounts. Once approved, the government notifies consumers of the applicable charges.

Under the multi-year tariff regime for FY 2023-24, various power companies, such as Multan Electric Power Company (Mepco), Gujranwala Electric Power Company (Gepco), Hyderabad Electric Supply Company (Hesco), Sukkur Electric Power Company (Sepco), Quetta Electric Supply Company (Qesco), Peshawar Electric Supply Company (PESCO), and Tribal Electric Supply Company (Tesco), have submitted adjustment and indexation requests.

Additionally, Islamabad Electric Supply Company, Lahore Electric Supply Company, and Faisalabad Electric Supply Company have filed multi-year tariff petitions covering the period from FY2023-24 to FY2027-28. They have also sought an interim tariff for FY2023-24.

As indicated in the press release, the Authority has duly determined the consumer-end tariff for FY 2023-24.

The release further discloses that the total revenue requirement of ex-Wapda distribution companies (Discos) for the current fiscal year is projected to be Rs3,281 billion, with anticipated sales amounting to 110,165 gigawatt-hours.

It is noteworthy that any potential tariff reductions, arising from rupee appreciation, decreased inflation, lower interest rates, or other mitigating factors, will be directly transferred to the consumers in the future.

Filed Under: Blog

Increase in Base Tariff for Financial Year 2023-24

July 9, 2023 by pescobill Leave a Comment

Increase in Base Tariff for Financial Year 2023-24

Shocking Development in Financial Year 2023-24

In a stunning turn of events, the National Electric Power Regulatory Authority (Nepra) has announced a significant surge of Rs6.90 per unit in the base tariff for the Financial Year 2023-24.

Sharing of New Base Tariff with Power Division

Sharing the news on Thursday, a high-ranking official from the energy ministry informed The News about the newly determined base tariff.

Increase in Base Tariff and Previous Fiscal Year Comparison

The increase of Rs6.90 per unit will propel the base tariff to Rs31.70 for 2023-24, surpassing the previous fiscal year’s rate of Rs24.80 per unit. It is worth noting that the government had initially set the base tariff at Rs24 per unit for the last fiscal year.

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IMF Briefed on Implementation of New Base Tariff and Circular Debt Strategy

IMF Team Receives Briefing at Power Division

During their visit to the Power Division on Thursday, the IMF team was provided with an overview of the implementation of the new base tariff starting from July 1, 2023. The team was also briefed on the strategy to effectively address the soaring circular debt, which has reached a staggering Rs2.64 trillion.

Concerns Raised by IMF Officials

Comparing it with the same period in fiscal year 2021-22, the monthly inflow of circular debt has surged by 32.59 percent to Rs35.8 billion, raising concerns among IMF officials.

IMF Urges Reduction of Recovery Losses and System Inefficiencies

“The IMF has urged officials to reduce recovery losses and address system inefficiencies, which are currently high.”

Government Obligated to Notify Base Tariff Increase by July 12

Base Tariff Notification for IMF Executive Board Meeting

The government is obligated to notify the increase in the base tariff before July 12, as it coincides with the meeting of the IMF executive board where the approval of the $3 billion Stand-By Arrangement (SBA) for a nine-month period will be sought.

Determination of New Price Range

Initially, Nepra had proposed an increase of nearly Rs4 per unit in the base tariff. However, due to feedback from the Central Power Purchase Agency (CPPA)-G, which projected electricity sales growth for the Financial Year 2023-24 and requested a tariff increase of Rs8.50 per unit, the regulator determined the new price range to be between Rs6.50 and Rs6.90 per unit.

Increase in Capacity Charges Payment and Nepra’s Decision

Alarming Increase in Capacity Charges Payment

The new base tariff for the financial year 2023-24 shows an alarming increase in the contribution of capacity charges payment, accounting for 65 percent compared to 53 percent in the Financial Year 2022-23. As a result, Rs4.48 will be part of the Rs6.90 per unit increase in the electricity base tariff.

Nepra’s Official Decision Yet to be Confirmed

Nepra officials declined to confirm the development when contacted by the reporter. However, they hinted that the decision is likely to be published on the Authority’s official website on Friday, pending approval from two members who are yet to give their go-ahead.

Base Tariff Details and Implications

Base Tariff for Financial Year 2023-24

The base tariff, set by Nepra, currently stands at Rs24.80 per unit for FY2022-23, but the government has officially notified it at Rs24 per unit. Considering the required increase, the base tariff for FY24 is expected to reach nearly Rs31.70 per unit. It’s important to note that the base tariff does not include surcharges, taxes, and duties, as they fall under the jurisdiction of the federal government. The power purchase price (PPP) constitutes 90 percent of the tariff, with capacity charges payments accounting for 65 percent. The power sector is currently facing significant challenges, with circular debt exceeding Rs2.64 trillion, and the government struggling to make payments to powerhouses for the electricity it purchases due to high system losses, low recovery rates, and insufficient budget subsidies.

Filed Under: Blog, Breaking News

Nepra Grants Permission for Rs1.61 per Unit Hike in Energy Prices

June 18, 2023 by pescobill Leave a Comment

NEPRA Grants Permission for Power Tariff Increase

Nepra Grants Permission for Rs1.61 per Unit Hike in Energy Prices

Rise in Power Tariff for Ex-Wapda Discos

The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs1.61 per unit in power tariff for the Ex-Wapda Discos (XWDISCOs) due to fuel charges adjustments (FCA) in April.

Adjustment Based on Fuel Charges Variation

NEPRA’s decision entails a rise of Rs1.6075/kWh in the applicable tariff for Ex-WAPDA DISCOs. The adjustment is determined by the fluctuations in fuel charges during April 2023.

Consumers’ Reference Fuel Charges and Total Cost per Unit

The Central Power Purchasing Agency-Guarantee (CPPA-G), representing power distribution companies (XWDISCOs), submitted a petition to NEPRA, citing the consumers’ reference fuel charges for April as Rs8.3875/unit. Accounting for previous adjustments, the total cost per unit amounted to Rs10.3975/unit. The CPPA-G sought permission to pass on the increase of Rs2.0100/unit to the consumers.

NEPRA’s Analysis and Approved Hike

After conducting a public hearing and thoroughly analyzing the data, NEPRA determined that the actual cost of electricity was Rs9.9950/unit, while the reference fuel charges from consumers were Rs8.3875/unit. Consequently, NEPRA approved a hike of Rs1.6075/unit instead of the CPPA-G’s claimed Rs2.010/unit. This decision will result in a burden of over Rs20 billion on power consumers in their June bills.

Fuel Cost Adjustments for Power Plants

Reduction in Claimed Amount

In April 2023, the fuel cost for several power plants, including Foundation Power, Saif Power, Halmore 43, and Thar Coal Block-I, was adjusted downward. As a result, the CPPA’s claim for these power plants reduced by Rs160.2,756 million, as per NEPRA’s decision.

Costly Power Plants in April 2023

During the hearing, NEPRA observed that costly power plants generated energy in April 2023.

Factors Impacting Energy Withdrawal and Financial Consequences

System Operator’s Limitations

In April 2023, the system operator limited the withdrawal of energy from efficient power plants due to various reasons. These reasons, along with their financial impact, included system constraints such as transmission network congestion/overloading amounting to Rs2,079 million, contractual obligations of Rs.306 million, permanent transmission line outage costing Rs757 million, and the financial impact due to underutilization of efficient power plants of Rs584 million.

Provisional Withholding and Justification Requirement

Considering these factors, NEPRA provisionally withheld an amount of Rs3,726 million from the FCA claim for April 2023. The withheld amount will only be released when the National Transmission and Dispatch Company (NTDC) provides complete justification to satisfy the Authority.

Passing on the Impact and Tariff Increase

As the deduction is made due to deviations from the Economic Merit Order (EMO) by the NTDC’s subsidiary, the Authority directed the CPPA-G to pass on the impact of the deduction to NTDC. This tariff increase will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

Filed Under: Blog

Pay Scale Revised 2023.24

June 10, 2023 by pescobill Leave a Comment

All wapda employees can check increase in their pay according to the new pay scale sheet. You need not to use any sort of calculator just follow the link and download the pfd file. To calculate your pay just lookup at your scale.

Salary Increse in 2023.24

Then look at that point where your current running basic pay then look down in this table the increase will show.

Salary Increse in Federal Budget

Click on the link and see your increase salary

 

 

Filed Under: Blog

Salaries Increased in Budget 2023-2024

June 9, 2023 by pescobill Leave a Comment

Latest News to Increase 35% Salaries from Scale 1-16 and 30% from Scale 17 to Above in Budget 2023-2024

Latest News to Increase Salaries in Budget 2023-2024

Introduction

In the eagerly awaited Budget 2023-2024, there is great news for employees across various sectors. The government has announced a significant increase in salaries, aiming to boost the financial well-being of workers. This comprehensive note will delve into the details of the salary increase, its implications, and the overall impact it will have on employees and the economy.

Importance of Salary Increase

A salary increase plays a pivotal role in improving the standard of living for individuals and their families. It provides financial stability, reduces stress, and enhances overall job satisfaction. Additionally, it acts as a motivating factor for employees, leading to increased productivity and a more engaged workforce.

Overview of the Budget 2023-2024

The Budget 2023-2024 is a critical fiscal plan that outlines the government’s financial priorities for the upcoming year. It aims to address various economic challenges while ensuring the well-being of the general population. One of the key highlights of this budget is the significant salary increase for employees in different salary scales.

Scale 1-16 Salary Increase

Under the Budget 2023-2024, employees falling within salary scales 1 to 16 will receive a remarkable salary increase of 35%. This increase is aimed at bridging the gap between inflation rates and wage growth, providing relief to employees who have faced stagnant wages over the years.

Scale 17 and Above Salary Increase

For employees in higher salary scales, specifically scale 17 and above, the government has announced a salary increase of 30%. This raise recognizes the contributions and responsibilities of individuals in senior positions and ensures they are duly rewarded for their expertise and experience.

Impact on Employees

The salary increase will have a profound impact on employees at all levels. It will improve their financial well-being, allowing them to meet their daily needs, save for the future, and provide better opportunities for their families. With increased disposable income, employees can contribute more to the economy through increased consumption.

Budget Allocation

The government has allocated a significant portion of the budget to fund the salary increase. This demonstrates the government’s commitment to prioritize the welfare of its employees. By allocating adequate resources, the government aims to ensure the successful implementation of the salary increase and minimize any potential disruptions.

Factors Considered

Several factors were taken into account while determining the extent of the salary increase. The government considered the prevailing inflation rate, the cost of living, industry standards, and the need to retain skilled employees. The aim was to strike a balance between the financial sustainability of the government and the well-being of the employees.

Implementation Process

The implementation of the salary increase will be a meticulous process, involving coordination between various government departments and organizations. Detailed guidelines and protocols will be established to ensure a smooth transition and to prevent any inconsistencies or discrepancies. The process will be closely monitored to address any challenges that may arise.

Benefits of Salary Increase

The salary increase brings several benefits to employees and the overall economy. Employees will experience improved financial security, increased job satisfaction, and a higher standard of living. The increased spending power of employees will stimulate economic growth.

Filed Under: Blog

Nepra Considers Additional Charges for Power Distribution Companies and K-Electric

June 1, 2023 by pescobill Leave a Comment

In a recent public hearing conducted by the National Electric Power Regulatory Authority (Nepra), discussions were held regarding the monthly fuel charges adjustments (FCAs) for April 2023. Nepra has hinted at allowing the state-run power distribution companies (discos) to collect an extra Rs1.6076/unit from consumers, while directing the K-Electric to reimburse a meager Rs0.0472/unit. Let’s delve into the details of these developments and their potential impact on the energy sector.

HIke in electricity price by PESCO

 Discos Seek Additional Collection, Nepra Considers Lower Amount

The power distribution companies (discos) had initially requested permission to collect Rs2.01/unit from consumers in their June 2023 bills. However, Nepra has indicated that they might allow a reduced amount of Rs1.6076/unit. This adjustment in the collection amount stems from the monthly fuel cost variations experienced by these companies.

 K-Electric’s Request and Nepra’s Judgment

In the same hearing, the Karachi-based utility, K-Electric, sought Nepra’s permission for an additional collection of Rs0.489/unit in June 2023 bills. However, Nepra has reserved its judgment on this matter, and the final decision is yet to be announced. Additionally, K-Electric also requested an adjustment of Rs5.17/unit for the quarter ending March 2023. The regulator is closely examining this request and expects a detailed report from K-Electric regarding the closure of one unit of the Bin Qasim Power Plant and the LNG unit of the power plant.

 Public Hearing Details and Nepra’s Chairman

The public hearings on these petitions were presided over by Nepra Chairman Tauseef H. Farooqi, with Engr. Maqsood Anwar Khan, Mathar Niaz Rana, and Ms. Amina Ahmed also present. The Central Power Purchasing Agency Guarantee Limited (CPPA-G), representing both the discos and K-Electric, sought Nepra’s approval for transferring an additional burden of Rs43 billion to consumers. This burden is associated with the monthly fuel cost and quarterly adjustments.

 Potential Relief for Consumers

During the hearing on K-Electric’s FCA petition for April, Nepra officials revealed that K-Electric generated electricity at a cost of Rs23.03 per unit from its own resources, whereas the cost of electricity received from the national grid was Rs10.47 per unit. Based on these calculations, Nepra has preliminarily determined that consumers should be given a concession of around 0.05/unit. This relief will be available to all user categories of K-Electric except lifeline power consumers, domestic consumers consuming up to 300 units, agricultural consumers, and electric vehicle charging stations (EVCS). Domestic consumers with Time of Use (ToU) meters, regardless of their consumption level, will also benefit from this relief. Nepra will make a final decision after considering the comments of all stakeholders.

Potential Financial Impact

If Nepra’s decisions are issued with the same per unit changes, the discos will collect an additional Rs15.626 billion in June, while K-Electric will return Rs72 million to its clients. The quarterly adjustment of Rs5.170/unit, if approved, will burden K-Electric consumers with Rs18.3 billion payable over three months.

The National Electric Power Regulatory Authority (Nepra) is carefully considering the requests of power distribution companies (discos) and K-Electric for additional collections and adjustments.

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Filed Under: Blog

NEPEA INCRESE IN POWER TARIFF :PESCO BILL

April 15, 2023 by pescobill Leave a Comment

The National Electric Power Regulatory Authority (NEPRA) has recently approved an increase in the price of electricity by Rs0.46 per unit due to monthly fuel adjustment. This news may not be a pleasant surprise for the consumers, who are already burdened with the rising cost of living. However, it is essential to understand the factors behind this decision and its impact on the economy.

What is NEPRA?

Fuel Price Ajdustment PEsco bill

NEPRA is an independent regulator established by the government of Pakistan to regulate the generation, transmission, and distribution of electric power in the country. NEPRA ensures that the electricity is produced, transmitted, and distributed efficiently and at a reasonable cost. The main functions of NEPRA are to grant licenses, regulate tariffs, and ensure the quality of service provided by the electricity companies.

What is Fuel Adjustment?

Fuel adjustment is a mechanism used by NEPRA to adjust the electricity tariff based on the cost of fuel used to generate electricity. The electricity companies purchase fuel to generate electricity, and the cost of fuel is a significant component of the total cost of electricity generation. The fuel adjustment is done on a monthly basis to reflect the changes in the cost of fuel.

Why NEPRA has approved an increase in the electricity price?

The increase in the electricity price approved by NEPRA is due to the higher cost of fuel used for electricity generation. The fuel cost has increased due to various factors, including the rise in global oil prices, the devaluation of the Pakistani rupee, and the use of expensive imported fuel. The higher fuel cost has increased the cost of electricity generation, and NEPRA has approved the increase in electricity price to reflect this cost.

Impact of the increase in electricity price

The increase in the electricity price will have a significant impact on the PESCO  consumers and the economy. The PESCO consumers will have to pay more for electricity, which will increase their monthly bills. This increase in the cost of living may affect the purchasing power of the PESCO consumers and reduce their disposable income. The increase in the electricity price may also lead to an increase in the cost of production for businesses, which may lead to an increase in the prices of goods and services.

On the other hand, the increase in the electricity price will benefit the electricity companies, as they will receive more revenue from the PESCO consumers. This increase in revenue may help the electricity companies to invest in the improvement of their infrastructure and the quality of service provided to the PESCO consumers.

Conclusion

NEPRA’s decision to increase the electricity price may not be a pleasant surprise for the consumers, but it is necessary to reflect the cost of fuel used for electricity generation. The increase in the electricity price will have a significant impact on the consumers and the economy, and it is essential to manage this impact carefully. The government and NEPRA should work together to ensure that the electricity tariff remains affordable for the consumers, while also ensuring that the electricity companies can operate efficiently and provide a high-quality service.

Filed Under: Blog

Nepra Applied additional surcharge of Rs3.39/unit

March 8, 2023 by pescobill Leave a Comment

Nepra Applied additional surcharge of Rs3.39 unit

The National Electric Power Regulatory Authority (NEPRA) on Monday authorized the imposition of an extra surcharge of Rs3.39 per unit on the strength consumers of all electricity distribution organizations (DISCOs), together with K-Electric.

NEPRA decided on the utility of the federal government, searching for to jack up the surcharge with the aid of Rs3.39 per unit, which will be accumulated from the energy buyers from March to June 2023.

Currently, the energy consumers are paying a forty-three paisa per unit surcharge, while the complete surcharge to be paid by means of the electricity consumers will be Rs 3.82/unit with an impact from the current NEPRA approval. However, this surcharge will stand at solely Rs 1.43/unit at some point of the subsequent economic year. Earlier on March two (Thursday), 2023, NEPRA had raised serious questions over the federal government’s request for the imposition of an extra surcharge of Rs 3.39 per unit on electricity consumers.

NEPRA had held public hearings underneath the chair, Tauseef H. Farooqi, on the federal government’s movement in search of the regulator’s approval for inserting the burden of an extra surcharge of Rs3.39 per unit on the electrical energy consumers.

During the hearing, NEPRA had stated that the regulator was once now not positive whether or not the unheard-of make bigger in patron pricing was once inside its area or now not and had sought a criminal opinion on the matter. NEPRA officers had stated that already 0.43 paisa per unit was once being charged from consumers, and now the authorities desired to expand it to Rs3.82 per unit.

The extra surcharge of Rs 3.39/unit is to be utilized to the billing of customers from March to June 2023 to cowl the markup expenses of Power Holdings Limited (PHL) loans, which are now not included via the already relevant FC surcharge of 0.43 paisa per unit for the contemporary monetary year. After 4 months, the extra surcharge of Rs 3.39 per unit is predicted to be decreased to Re 1 per unit to cowl the markup fees of PHL; the whole surcharge would then end up Rs 1.43/unit for the new economic year.

The levying of an extra surcharge on the electrical energy tariff will allow the authorities to pay off the hobby on the loans of PHL, valued at Rs one hundred twenty billion. With the software of an extra surcharge, the whole surcharge will top at Rs 3.82/unit for the 4 months (Mar-June).

The modern-day surcharge being paid by means of electricity shoppers at a charge of 0.43 paisa per unit is earmarked to clear an pastime quantity of Rs forty four billion collected on loans from the PHL. Out of the complete excellent finance amenities of Rs. 800.253 billion as of June 30, 2022, servicing of loans or hobby costs quantities to Rs. 246.384 billion.

It is pegged to be paid again via the imposition of a Financing Cost surcharge at a price of 0.43 paisa per unit. This surcharge is now not enough to cowl markup expenses on complete PHL loans. The markup on last loans is being paid from income amassed thru electrical energy sales, and this constrains the repayments of different monetary obligations.

To summarise, the whole surcharge turns into Rs 3.82/unit for the stated period, and for the new monetary year, an extra surcharge of Rs 3.39/unit will be decreased to Re 1/unit to cowl the extra markup fees of PHL loans, which can’t be included via the already relevant FC surcharge of 0.43 paisa per unit.

This would yield a complete surcharge of Rs. 1.43/unit for the new economic year. The NEPRA chairman, who had presided over the proceedings, requested whether or not the authority may want to reject this proposed imposition of the surcharge, to which officers from the Power Division replied: “Yes, it can”. The chairman had stated that the regulator had sturdy reservations about the imposition of this surcharge, as these who have been loyal shoppers and many times paid their payments had been to pay Rs3.39/unit surcharge, whilst these who did no longer pay their payments had been rejoicing. “The authority is neither accepting nor rejecting this surcharge and has linked it with the felony opinions and requested the Power Division to take criminal views on it and then come to us. “We want the prison function of the authorities involving the imposition of a surcharge,” he said.

PESCO NEW Tariff Rate 2023

Effect On Consumers of PESCO

The chairman had stated that if NEPRA allowed recoveries in this way, then different techniques would emerge as redundant. “If the authorities has the authority, then it need to no longer shift the accountability onto NEPRA.

This situation did now not emerge in one day; we had quite a few instances forewarned the authorities of deteriorating electricity management, however no heed was once given. It suggests the inefficiencies of the strength division, due to which each and every yr the state of affairs receives worse. “NEPRA member Rafique Ahmad Shaikh had requested the division to do its homework on the issue, take prison views related to the surcharges, and then come to us. He stated that the surcharge will now not remedy the troubles dealing with the government. He had stated that the industrial tariff may want to go up to Rs 32/unit. Followed by way of the query “If industries choose for an alternate option, then how can the authorities recover?”. Ironically, the energy division respectable had no reply and stated that we had no longer regarded into this query so far.

The increasing prices of electricity have become a growing concern for many individuals, especially the common man. Electricity is an essential resource that is used in nearly all aspects of daily life, including powering homes, businesses, and transportation. As electricity prices continue to rise, the impact on the common man becomes increasingly significant.

One of the primary effects of increasing electricity prices is that it can cause a financial strain on individuals and families who are already struggling to make ends meet. Higher electricity bills can lead to reduced disposable income, which can have a ripple effect on the overall economy. People may have to cut back on other expenses, such as food, clothing, or entertainment, to compensate for the higher cost of electricity.

In addition to financial strain, increasing electricity prices can also lead to energy poverty. This occurs when individuals or families cannot afford to heat or cool their homes, which can have severe health consequences, particularly for the elderly and young children. Furthermore, energy poverty can limit educational and job opportunities, as individuals may have to prioritize basic needs over educational or career pursuits.

Lastly, higher electricity prices can also have an impact on the environment. As individuals struggle to pay their bills, they may turn to alternative sources of energy, such as wood or coal, which can be harmful to the environment and human health. This can result in increased air pollution, which can lead to respiratory illnesses and other health problems.

In conclusion, increasing electricity prices can have a significant impact on the common man, from financial strain to energy poverty and environmental concerns. Governments and utilities must work together to address these challenges by developing and implementing policies that balance the need for affordable energy with the need to reduce carbon emissions and protect public health.

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