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Burdening masses: NEPRA raises basic electricity tariff by Rs7.9 per unit

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3 years ago

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  • NEPRA cites increase in fuel prices, capacity cost as reasons behind increase in power tariff.
  • Basic power tariff has been raised by Rs.7.9078/kWh for the next fiscal year 2022-23.
  • Decision taken in line with IMF’s demand, power distribution companies’ requests.

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) Thursday raised the basic power tariff by Rs7.9078/kWh for the next fiscal year 2022-23 increasing the burden of inflation on the people of Pakistan.

The decision has been taken in line with the International Monetary Fund’s demands and the power distribution companies’ requests. Currently, the basic power tariff is Rs16.91 per unit and with an increase of Rs7.9078 per unit, it will be more than Rs24 per unit.

The NEPRA cited an increase in fuel prices, capacity cost and the impact of the devaluation of the Pakistani rupee as reasons behind the significant increase in power tariff.

According to a statement issued by the regulatory authority, the tariff has been determined for the fiscal year 2022-23.

The statement further mentioned that:

  • The energy purchase price was projected as Rs1,152 billion
  • Capacity charges including National Transmission and Dispatch Company (NTDC) and high-voltage, direct current (HVDC) electric power transmission cost is projected as Rs1,366 billion.
  • The total revenue requirement of XWDISCOs including DISCOs margin and prior year adjustment (PYA) is projected as Rs2,805 billion with projected sales of 113,001 GWh.
  • MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO and TESCO have been allowed an investment of around Rs406 billion for their distribution investment programme for the five years.
  • XWDISCOs allowed transmission and distribution (T&D losses have been reduced from 13.46% to 11.70% for the FY23.

“The determined tariffs have been intimated to the federal government and the uniform tariff so determined by NEPRA after incorporating the amount of subsidy/surcharges, intimated by the Government of Pakistan, is forwarded for notification,” the statement read.

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Robust activity lets PSX climb above 115,000 level again.

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On Friday, the Pakistan Stock Exchange (PSX) resumed its upward trend, crossing 115,000 points once more.

The PSX had strong action in the morning session, as the KSE-100 index increased by 1,000 points to 115,138.

The notoriously volatile PSX closed Thursday at 114,037 points, up 594 points.

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Meanwhile, in the interbank market this morning, the US dollar fell 7 paisas to Rs278.65 against the Pakistani rupee.

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SBP will announce monetary policy on January 27.

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The State Bank of Pakistan (SBP) will release its monetary policy on Monday.

The Monetary Policy Committee (MPC) of the SBP will convene on the first day of the following week to make decisions on monetary policy.

The Monetary Policy decision will be announced by Governor SBP Jameel Ahmad at a news conference on the same day after the MPC meeting, according to an official release.

In December, the central bank reduced policy rates by 200 basis points (bps) to 13 percent.

“In November 2024, headline inflation fell to 4.9 percent year on year, meeting the MPC’s estimates. This decrease was mostly caused by the ongoing decline in food inflation and the phasing out of the impact of the gas tariff increase in November 2023,” SBP stated in an official release.

“However, the Committee noted that core inflation, at 9.7 percent, is proving to be sticky, while consumer and business inflation expectations remain volatile.” To that end, the Committee restated its previous assessment that inflation may remain volatile in the short term before stabilizing within the target range.

“At the same time, growth prospects have slightly improved, as evidenced by a recent increase in high-frequency indicators of economic activity.” Overall, the Committee concluded that its approach of gradual policy rate decreases is keeping inflationary and external account pressures under control while promoting long-term economic growth.

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Finance Minister Meets With World Leaders at World Economic Forum in Davos

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2 days ago

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During his attendance at the World Economic Forum in Davos, Switzerland, Finance Minister Muhammad Aurangzeb has met with officials of organisations and leaders of many nations.
Bangladesh’s Chief Advisor, Muhammad Younas, met with Mohammad Aurangzeb.
On the fringes of the World Economic Forum’s Annual Meeting 2025 Opening Banquet, there was an informal meeting.
Additionally, the Finance Minister met with Anwar Ibrahim, the Prime Minister of Malaysia.
Both leaders discussed economic cooperation and bilateral ties.
Muhammad Aurangzeb also had a meeting with Dp World’s Rizwan Soomro and Yuvraj Narayan.
They talked about how to strengthen Pakistan’s logistics and infrastructure systems to support trade.
“The Pakistani government is committed to advancing joint projects and values partnerships in both business-to-business and business-to-government cooperation,” the finance minister added.

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