The government has decided not to increase the duration of peak hours for electricity consumers, putting to rest the recent rumors of an extension to meet the International Monetary Fund‘s demands.
No Changes in Peak Hours in NEPRA’s Latest Pricing Determinations
Contrary to reports, the National Electric Power Regulatory Authority (NEPRA) has not included any increase in peak hours in its latest pricing determinations for distribution companies. The alleged extension is not part of NEPRA’s current strategy.
Social Media Rumors Denounced by Public
Amidst the speculations, there were widespread rumors on social media that the government had extended peak hours by two hours from July 1, 2023. However, this move was met with public disapproval.
Peak Hour Extension Shelved Temporarily
Although there was a recent increase in the basic electricity tariff by Rs. 4.96 per unit for July bills, the extension of peak hours has been postponed for the time being.
Revenue Boost Expected from Increased Tariffs
The increase in the base tariff to Rs. 29.78 per unit is projected to generate around Rs. 3.28 trillion in revenue during the 2023-24 period.
Subsidies for Poor Consumers Under Review
Negotiations are underway regarding the adjustment of subsidies for low-income consumers in the newly rebased pricing structure. The Power Division is awaiting approval from the Prime Minister and Finance Minister before seeking Cabinet authorization. NEPRA is actively involved as a prime consultant to expedite the matter.
Public Hearing on the Horizon
NEPRA is expected to hold a public hearing on the case. The proposed rebasing might result in an additional cost of roughly Rs. 2-2.5 per unit on consumers’ bills, considering the current effective cost is Rs. 29.78 per unit, including quarterly tariff adjustments.
