Nepra endorses massive increase in electricity rates
11 October, 2013
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra), which is supposed to safeguard the rights of consumers, has joined the government and maintained the unprecedented raise in power tariff ranging from 40-172 percent for domestic and agriculture consumers.
The raise was notified on September 30, which was later withdrawn after the include the subsidy portion in the electricity bills, not the government so the notification was withdrawn by the government and a review application was submitted to Nepra in the light of the SC's decision.
Nepra's acting chairman Khawaja Naeem said that Nepra would finalise the review of the application about the power tariff today (Thursday). "Now we will mention the subsidy every category of domestic consumer will get in the new electricity bills after the enforcement of the raise in power tariff from October 1, 2013."
He said that more or less the raise in tariff would be the same that the government had notified on September 30. The documents managed from Nepra also confirmed that Nepra was not going to provide any relief to consumers but would maintain the same raise in power tariff earlier notified by the government.
It would just include the subsidy portion in electricity bills showing how much subsidy the government was still sharing with consumers in power tariff.However, Nepra spokesman Safeer told that the ministry would issue the notification.
The tariff has been raised by Rs11.68 per unit for consumers using electricity from 1 to 300 units per month. And for consumers who utilise electricity from 301 to 700 units a month, the tariff has been increased by Rs10.67 per unit. So much so, consumers using more than 700 units a month would have to pay more Rs12.93 per unit. However, the power tariff would be maintained at the existing level for those consumers who consume only 200 units of electricity a month.
Agriculture consumers who sustained massive losses after their standing crops got destroyed to a large extent in the wake of recent floods have been subjected to the raise in power tariff by Rs3.58 per unit.
According to the new categories, the power tariff for consumers using 201-300 units a month will now stand at Rs14 per unit. Likewise, the tariff will be at Rs16 per unit for those consumers who come under the slab of 301-700 units and Rs18 per unit for those who will consume electricity more than 700 units a month. And the agriculture consumers would now pay tariff of Rs10.35 per unit from October 1, 2013 onwards.
The most crucial decision the government has taken is to abolish the slab benefit for those poor consumers who exceed the usage of units of slab 1-200 and consume 201 units a month. This type of consumers will not be entitled to the first slab benefit, rather they will be exposed to pay cost of Rs14 even from unit 1 up to 201 units.
The tariff of 1-100 unit slab consumers is 5.79 per unit and for 101-200 units Rs8.11 per unit and if one is found to utilise 201 units, one will not be given the tariff fixed for 1-100 and 101-200 slab consumers. Instead, he or she will pay Rs14 per unit from unit 1 up to 201 units. The government has taken this ruthless decision knowing the fact that 65 percent electricity gets consumed by consumers who fall under the slab of 1-300 units. The new tariff of consumers who consume 201-300 is Rs14 per unit. However, consumers of 301-700 units slab and over 700 units slab would enjoy the pervious slab benefit meaning that the government has taken care of the interest of affluent consumers.
The lifeline consumers' tariff will be maintained at Rs2 per unit, who consume just 50 units a month and for consumers who have been sanctioned load of 5kv and above, the off-peak tariff is now at Rs12.50 per unit and peak hours tariff will be at Rs18 per unit.
As per the earlier tariff regime, the tariff for 1-100 unit slab consumers was at Rs5.79 per unit and for 101-300 units slab consumers Rs8.11 per unit, and tariff for 301-700 slab units consumers was at Rs12.33 per unit and Rs15.07 for over 700 slab consumers. And under the earlier tariff regime, off peak tariff was at Rs8.22 per unit and peak hours tariff stood at Rs13.99 per unit.