In a welcome relief for electricity consumers, the National Electric Power Regulatory Authority (Nepra) has approved a reduction in electricity prices.
The authority has approved a Rs1.14 per unit decrease for October under the monthly fuel cost adjustment mechanism.
The decision was formalized after a public hearing on November 26, following a request from the Central Power Purchasing Agency (CPPA) seeking a Rs1.1 reduction per unit.
The price cut applies to all consumers using over 100 units from distribution companies (DISCOs). However, it excludes lifeline consumers and electric vehicle charging stations. Nepra issued an official notification confirming the reduction.
Winter package approved
In another development, Nepra announced a special winter package for electricity consumers, effective from December to February. This initiative aims to incentivize higher electricity usage during the winter months, offering substantial savings for domestic and industrial consumers alike.
Also Read: PM announces to bring 'winter package' for power sector
Under the winter package, the price of an additional unit will be Rs26.7 compared to last year, as per Nepra.
Under the winter package:
- Domestic Consumers:
- Save 30% or Rs11.42 per unit on minimum additional consumption.
- Save 50% or Rs26 per unit on maximum additional consumption.
- Industrial Consumers:
- Save 18% or Rs5.72 per unit on minimum additional consumption.
- Save 37% or Rs15.5 per unit on maximum additional consumption.
Industrial net metering and weighing consumers, previously excluded, will also benefit from this package, though they were not part of the federal government’s initial proposal.
The winter package and electricity price reduction are expected to ease financial pressures on consumers and encourage higher energy usage during off-peak months. Nepra’s decisions have been forwarded to the federal government for implementation, with the winter package set to remain valid for three months.
In the second week of November, the Economic Coordination Committee (ECC) of the Cabinet approved the winter relief package aimed at providing temporary financial relief to electricity consumers across the country. Under the package, a flat rate of Rs26.7 per unit would be applied to additional electricity consumption for consumers exceeding 200 units.
Also Read: Winter relief: Historic electricity package of Rs26.7/unit approved
The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, deliberated on the proposal from the Power Division and gave its nod to the initiative. This initiative is expected to support domestic, commercial, and industrial consumers, offering varying levels of relief.
Households and businesses consuming more than 200 units will enjoy significant cost savings. Commercial users could benefit by 34% to 47% under this scheme, while industries are expected to see cost reductions ranging from 18% to 37%.
The government has already secured approval for the package from the International Monetary Fund (IMF). To determine eligibility, electricity consumption during the winter months of 2024 will be compared with the average consumption of the same months over the past three years.
The Finance Ministry anticipates that this package will encourage higher electricity usage while reducing reliance on gas during the winter season. By doing this, maximum utilization of the generated electricity will be possible.
