Once again, the federal government has hit inflation-stricken residents hard with yet another hike in Electricity Costs Rise.
Sources at the National Electric Power Regulatory Authority (Nepra) said the power tariff increase of Rs 3.25 per unit for June, July, and August was necessary due to the rising cost of generation and the need for periodic adjustments to align tariffs with revenue requirements.
Nepra has also conveyed the economic rationale for the move to the federal government. On the other hand, this could imply an extra cost of Rs 46 billion to customers who are already facing expensive energy bills since global oil prices surged. It will also tighten their purse strings more as it is, with inflation in double digits.
This decision will push up electricity rates substantially, which will affect all sectors of the economy. Including households and businesses alike, and jack up their financial difficulties.
NEPRA Reviews CPPA’s Power Tariff Increase Proposal
Earlier, Nepra had considered a proposal to increase the power tariff by Rs 3.49 per unit filed by the Central Power Purchasing Agency (CPPA) on account of April’s fuel cost adjustment. On May 30, Nepra reserved its decision but later slightly reduced the increase proposed by CPPA. The CPPA sought higher rates on account of higher fuel costs and other operational expenses incurred over the past few months.
Such upward revision reflects continued challenges in the energy sector. Where fluctuation in oil prices and lack of efficiency trigger adjustments passed on to consumers through uniform tariffs determined by regulators based on lower benchmarks set for recovery from consumers instead of real cost. The government is trying to achieve this balancing act between operational viability and public affordability.
From residential consumers to commercial users—all already burdened with ever-rising inflation. Economic instability—this additional burden of Rs 46bn will surely stoke public resentment, given successive impositions on their wallets during hard times when people have been facing one financial challenge after another.
