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

The National Electric Power Regulatory Authority (Nepra) has announced a controversial increase of Rs25.30 per unit to a special industrial electricity tariff, despite objections from two members who claim the true marginal cost is actually Rs31.83 per unit. The decision has sparked concerns among industry players and will likely impact all electricity consumers, including those served by K-Electric and other distribution companies.

The increase is part of an additional burden of Rs2.37 per unit on electricity consumers for November, aimed at recovering Rs25 billion under a fuel cost adjustment. The tariff revision has been met with strong opposition from the industrial sector, which argues that the package introduced in December last year has not benefited them and is instead increasing their electricity bills.

Nepra Chairman Waseem Mukhtar, who ultimately approved the revised rate, accepted the dissenting members' arguments but exercised his casting vote to maintain the Rs25.30 per unit rate instead of retaining the original Rs22.98 per unit.