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.
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