NEPRA Announces Higher Special Electricity Rates for Industries and Agriculture

The National Electric Power Regulatory Authority (NEPRA) has increased the special electricity rate for industrial and agricultural users from Rs. 22.98 to Rs. 25.30 per unit, a rise of Rs. 2.32 per unit. This change, part of the Incremental Consumption Package (ICP), will begin with the November billing cycle. Despite opposition from two of its four members, NEPRA's decision was approved by the Chairman, Waseem Mukhtar, who used his casting vote.

NEPRA members Amina Ahmed and Maqsood Anwar Khan argued that the new rate lacked proper cost calculations, citing an assessment of Rs. 31.83 per unit as the correct marginal cost for additional electricity. They requested the suspension of the package until more accurate data was available. Industrial consumers warned that setting the incremental rate below the actual cost could lead to fuel cost adjustments and burden other electricity consumers.

The package, introduced in December, aimed to encourage higher electricity use while preventing the passage of additional costs to non-participating consumers. Critics blamed the Power Division for delays in providing the necessary cost calculations, which were due six months prior. NEPRA warned that failure to comply could result in package suspension, legal action, and termination of the arrangement.