NEPRA Imposes Fixed Charges of Up to Rs. 1,000 Per Month on Electricity Consumers

The National Electric Power Regulatory Authority (NEPRA) has imposed fixed charges ranging from Rs. 200 to Rs. 1,000 per month for residential consumers set to take effect on July 1, 2024.     Currently, the cost of electricity units comprises 72 percent fixed charges and 28 percent variable charges. Fixed charges only account for 2 percent of revenue, with variable charges making up 98 percent. NEPRA aims to change this and the new fixed charges are a step in that direction. The government plans to approach NEPRA for a uniform tariff for FY25. The power regulator has already determined an increase in the base tariff for FY25 to Rs. 5.72 per unit which will set the new base tariff at Rs. 35.50 per unit, up from Rs. 29.78 per unit in FY24. The power sector is expected to generate over Rs. 3.763 trillion in revenue from consumers in FY25 due to the new tariff structure.