The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs. 4.26 in the electricity tariff for five months.
NEPRA said that the hike was allowed to account for a fuel price adjustment and generation mix for the past few months. The new tariff includes charges for fuel used to generate electricity.
The tariff at the time of billing varies with the changes in international oil prices. The difference is later adjusted to consumer bills.
Let’s understand this phenomenon:
Electricity prices were increased for five months – from November 2019 to March 2020 – because oil prices in the international market were higher during the period. Prices were reduced for three months – from April 2020 to June 2020 – by Rs. 3.10 per unit because the government bought oil at a reduced price during these months. Now the prices are increasing again for the next five months.
A decision regarding the increase in the K-Electric tariff was put off until the next meeting. NEPRA will scrutinize K-Electric’s documents to verify their claims regarding the tariff increment. The report will be forwarded to the Prime Minister for the final call.