Nepra Increases Industrial Electricity Tariff to Rs25.30 Amid Dissent

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has announced a contentious increase in the industrial electricity tariff to Rs25.30 per unit, effective immediately. This decision, made on Friday, comes despite opposition from two members of the regulatory body who argue that the actual marginal cost should be Rs31.83 per unit.

In addition to the tariff hike, Nepra has approved an extra charge of Rs2.37 per unit for electricity consumers in November to recover Rs25 billion under the fuel cost adjustment mechanism. The move has drawn sharp criticism from the industrial sector, which fears that the increased costs will adversely affect all electricity consumers, including those served by K-Electric and various distribution companies.

The regulator’s decision has been attributed to the failure of the Power Division and its subordinate entities to meet their legal obligations within the required timelines. This has led to an unprecedented deadlock within Nepra, raising concerns about the potential for further cost increases for consumers nationwide.

Looking ahead, Nepra has warned of possible package suspensions and legal actions against entities that continue to miss deadlines. Stakeholders are now awaiting further developments as the situation unfolds, with the industrial sector calling for a reconsideration of the tariff increase.