The National Electric Power Regulatory Authority (NEPRA) has revealed alarming details, revealing that electricity generated at Rs 7.62 per unit is sold to consumers at a high price of Rs 45 per unit due to addition of seven taxes and charges.
The report describes the breakdown of these costs and explains why electricity bills are so high. It reveals that Rs 15.28 per unit comprises various taxes, while Rs 0.67 per unit is added annually as part of a ‘New Year’ surcharge.
Additionally, consumers have a margin of Rs 3.10 per unit for distribution companies (DISCOs). The report further highlights that an adjustment of Rs 0.01 per unit is factored into the bills, along with Rs 1.37 per unit for transmission charges. However, the most important component is Rs 17.01 per unit allocated towards capacity payments for power producers.
According to NEPRA, while the actual cost of electricity generation is Rs 7.62 per unit, the cumulative effect of taxes, charges and margins inflates the final price to Rs 45 per unit for consumers.
Earlier today, K-Electric (KE) filed an application with the National Electric Power Regulatory Authority (NEPRA) for a reduction of Rs 4.98 per unit in electricity tariff under the Fuel Tariff Adjustment (FCA) for November of 2024.
According to a statement from the KE spokesperson, this is the third consecutive FCA where consumers could benefit from a rate reduction.
The price reduction request will be reviewed by NEPRA, which will issue a written decision after evaluating the request. The hearing on this application will take place on January 15, 2025.
