NEPRA Reduces Electricity Prices for Low End Consumers

The National Electric Power Regulatory Authority (NEPRA) has decided to give a relief to its customers for the month of October.

In a recent meeting, NEPRA has announced a reduction in price of per unit for electricity by Rs. 1.81 for consumers all over Pakistan.

Not for Karachi

According to NEPRA officials, the decision has been taken keeping in view the fuel price adjustment for August. K-Electric is exempted from the price adjustment while the decision will impact all the other electricity distributors.

Furthermore, the customers that have consumed more than 300 units will not benefit from the price reduction. This means that most of the consumers will not be able to benefit from this ‘relief’.

NEPRA charged its customers Rs. 6.46 per unit during the month of August, while the production cost of electricity was only Rs. 4.63 per unit.

A total of Rs. 20 Billion have to be adjusted in the electricity bills of the month of October.

Relief for Whom?

Since electricity prices have remained high during the past few months this will be a huge relief, at least for those of us that don’t consume more than 300 units of electricity (read 99% of consumers).

With increasing electricity production, one would expect prices to fall due to greater availability of electricity. However this isn’t the case and we won’t be able to see significant changes in electricity tariffs anytime soon.