NEPRA Enforces Monthly Fixed Charges of Up to Rs. 1,000 for Electricity Consumers
NEPRA Introduces New Fixed Charges for Electricity Consumers Effective July 1, 2024
Starting July 1, 2024, the National Electric Power Regulatory Authority (NEPRA) will implement fixed charges for electricity consumers across various categories. These charges, aimed at restructuring revenue distribution in the power sector, range from Rs. 200 to Rs. 1,000 per month for residential consumers based on their electricity usage:
- Residential Consumers:
– 301-400 units/month: Rs. 200/month
– 401-500 units/month: Rs. 400/month
– 501-600 units/month: Rs. 600/month
– 601-700 units/month: Rs. 800/month
– Above 700 units/month: Rs. 1,000/month
– Time of Use (ToU) meter users: Rs. 1,000/month
- Commercial Consumers:
– Load less than 5 kW: Rs. 1,000 per month
– Load of 5 kW and above: Increased from Rs. 500 to Rs. 2,000 per month
- Industrial Consumers:
– B1 category (up to 25 kW, ToU metering): Rs. 1,000 per month
– B2 category (up to 500 kW): Increased from Rs. 500 to Rs. 2,000 per month
– B3 category (5,000 kW): Increased from Rs. 460 to Rs. 2,000 per month
– B4 category (all loads): Increased from Rs. 440 to Rs. 2,000 per month
Currently, fixed charges constitute 72 percent of the electricity unit cost, with variable charges making up the remaining 28 percent. Despite this, fixed charges contribute only 2 percent to total revenue, with variable charges comprising the bulk at 98 percent. NEPRA’s objective with the new fixed charges is to rebalance this ratio.
Looking ahead to Fiscal Year 2025, the government plans to propose a uniform tariff structure, while NEPRA has already decided to increase the base tariff to Rs. 5.72 per unit. This adjustment will raise the overall base tariff to Rs. 35.50 per unit, up from Rs. 29.78 per unit in Fiscal Year 2024.
The power sector anticipates generating revenues exceeding Rs. 3.763 trillion from consumers in Fiscal Year 2025 under the revised tariff framework. These measures reflect NEPRA’s efforts to streamline costs and enhance revenue stability in the electricity sector.
