ISLAMABAD – While meeting another condition of the International Monetary Fund, pertaining to hike in power tariff, the Federal Cabinet on Wednesday approved increase in the electricity base tariff for 2024-25.
The Federal Cabinet through circulation has approved the summary of base tariff increased, based on the recommendations of the National Electric Power Regulatory Authority (NEPRA), official source told The Nation.
Following the approval of the Federal Cabinet, the Power Division will submit a motion to NEPRA for uniform electricity tariff.
It is worth to note that in a recent virtual meeting with IMF, the fund has once again demanded the increase of Electricity base tariff for the FY 2024-25.The decision of NEPRA was under consideration of the Federal government since June 14, 2024. On June 14, the instant decision of the NEPRA was intimated to the Federal Government for filling of uniform tariff application in terms of section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
Notably, on June 14, the NEPRA had approved a hike of Rs 5.72 per unit in base electricity tariff, which will burden the electricity consumers by an additional approximately Rs 600 billion during the upcoming Fiscal 2024-25. If NEPRA decision is accepted in full, it will jack up the average base tariff from the existing Rs 29.78 per unit, during 2023-24, to Rs 35.50 per unit, for the upcoming FY, effective from July 1,2024.
In its decision in the matter of request filed by CPPA-G for Power Purchase Price Forecast for the FY 2024-25, NEPRA said that the total Power Purchase Price of XWDISCOs for the FY 2024-25, , works out as Rs.3,277.506 billion, which includes Rs.1,161.257 billion for fuel & variable O&M cost and Rs.2,116.250 billion as capacity charges including UoSC of NTDC & PMLTC and MoF of CPPA-G. The capacity charges translate into Rs.6,957/kW/month, based on projected average monthly MDI of 25,348 MW. Thus, the capacity charges works out as around 65% of the total projected PPP of XWDISCOs, whereas energy cost is around 35% of the total projected PPP. In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs. 17.66 per unit, whereas energy charges are Rs.9.69 per unit, totaling to Rs.27.35 per unit for the FY 2024-25.
