Nepra raises industrial tariff to Rs25.30 per unit, despite dissent

The National Electric Power Regulatory Authority (Nepra) recently raised the industrial tariff by Rs25.30 per unit, despite opposition from two members who argued the actual marginal cost stands at Rs31.83 per unit. Power regulator Nepra warned of potential package suspension and legal action due to missed deadlines. The decision to increase the tariff will result in consumers paying an additional Rs2.37 per unit in November bills to recover Rs25 billion under the fuel cost adjustment.

The controversial revision was approved by the regulator despite the industrial sector's opposition, which could negatively impact all electricity consumers. The decision was made following a controversy over the incremental support package (ISP) of Rs22.98 per unit introduced for industrial consumers in December last year. Industrialists had been protesting against the package since May, arguing it failed to benefit them and was increasing their electricity bills.

The ISP was due for a review after six months, but Nepra revised the rate to Rs25.30 per unit, a move strongly opposed by the two dissenting members, who maintain the rate is a "random number" unsupported by evidence. The members argue that compliance with the federal cabinet's decision and Nepra's own directives requires a reassessment of the existing rate to determine whether it should be retained, revised, or suspended.