In a recent move by the National Electric Power Regulatory Authority (NEPRA), electricity rates in Pakistan have seen an upward adjustment of Rs7.05 per unit. This change, attributed to the fuel cost adjustments for January 2024, was prompted by a request from the Central Power Purchasing Agency (CPPA) for a price increase for that month.
This adjustment in the electricity tariff is expected to place an additional financial load of approximately Rs66 billion on the consumers. It’s important to note, however, that this revised rate will not affect K-Electric and lifeline consumers, sparing them from the hike.
As a result of this increase, the power distribution companies are set to recover the additional Rs7.05 per unit from their consumers in the electricity bills for March 2024. This means that the upcoming bills will reflect the new, higher rates, directly impacting household budgets.
In addition to electricity, gas prices have also undergone a significant rise. Earlier in the month, the federal cabinet approved a surge in gas tariffs for residential users by up to 67% and an astonishing 700% for fertilizer plants. This move aims to gather an extra Rs242 billion from consumers, in line with the International Monetary Fund’s (IMF) conditions that necessitated a price increase by February 15th. Following the cabinet’s decision, the Oil and Gas Regulatory Authority (OGRA) promptly issued a notification detailing the new gas prices, which took effect from the start of February, with the revised rates to be reflected in the forthcoming bills.
The dual increase in both electricity and gas prices underscores the challenges faced by consumers in Pakistan, who will need to adjust their budgets to accommodate these higher utility costs starting March 2024.