The Power Division has dropped a new electricity bomb and unveiled revised electricity tariff slabs following an increase of Rs5.72 in the basic electricity tariff. The federal government has submitted the tariff adjustment request to the National Electric Power Regulatory Authority (Nepra), pending a public hearing scheduled for 2pm on July 8.

Nepra has received the federal government's request to increase the electricity price by Rs5.72.

According to the new tariff structure released by the Power Division, the revised rates have come into effect from July 1, 2024 regardless of when Nepra issues the official notification. The new electricity tariff will have a little impact on most people's monthly bills. It further said that the new rate will be applicable to all units for electricity consumption above even one unit from each slab, the notification stated.

Household electricity consumers

The minimum rate for household electricity consumers has been set at Rs23.73 per unit. For consumers using 200 units continuously over six months, the tariff will be Rs26.11 per unit.

Also Read: Electricity bills calculator as per new tariff slabs

The new slabs outline incremental rates for different levels of electricity consumption:

Non-protected consumers using up to 100 units of electricity will be charged Rs23.73 per unit
Non-protected consumers using 101 to 200 units will be charged Rs25.53 per unit
For usage between 201 and 300 units, the rate will be Rs29.74 per unit
For consumption of 301 to 400 units, the electricity rate will be Rs32.98 per unit
Consumers using 401 to 500 units will pay Rs34.27 per unit
For those using 501 to 600 units, the new rate will be Rs35.64 per unit
Users of 601 to 700 units will have to pay Rs36.96 per unit
Rates increase progressively for higher consumption, reaching Rs41.69 per unit for usage exceeding 700 units

Commercial, industrial, agri consumers

In addition to household tariffs, commercial consumers will face a rate of Rs41 per unit, while industrial consumers will pay Rs30 per unit. Agricultural consumers will benefit from a reduced rate capped at Rs22.85 per unit.

Also Read: Electricity bills revised fixed charges for domestic consumers

The Power Division emphasized that the new tariff adjustments aim to minimize impact on the majority of poor household consumers, with an increase of less than 2% for 16.8 million or 58% of such households. Conversely, relatively affluent consumers may experience an average increase of 9% in their monthly bills.

Govt subsidy

To support consumers amid these changes, the government has allocated a subsidy of Rs440 billion, according to the notification. It is anticipated that as the economy improves, electricity rates could decrease by an average of 3% by January 2025 compared to June 2024 levels.

The issuance of fixed charges was also necessary in view of the fixed 75% cost of the power sector, the statement said, reflecting the Power Division's commitment to stabilizing the power sector and supporting domestic industries with a reduction in industrial sector burdens by Rs150 billion.

Stakeholders are encouraged to participate in the upcoming Nepra public hearing to provide their feedback before the official notification of the revised electricity prices is issued.

The announcement underscores the government's efforts to balance economic considerations with consumer affordability while ensuring sustainable development in the energy sector.