ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) has prepared a formula and handed over the recommendations to the government to cut electricity price by Rs20 per unit under three-month winter package.
Nepra said electricity prices could be reduced through the “Balance of Tariff” method, explaining that the prices could be decreased by revising capacity payments and surcharges.
Additionally, the authority suggested that operational inefficiencies can be improved to bring down power costs.
According to the NEPRA document, the current electricity price is Rs45.06 per unit. Out of this, capacity charges stand at Rs17.01 per unit, taxes and surcharge Rs15.28 per unit, and Rs3.10 per unit for distribution margins collected by electricity distribution companies.
The document also revealed that 1 paisa per unit is collected in wake of repair, revenue collection, and future adjustments. Furthermore, transmission charges stand at Rs1.37 per unit. The average net generation cost of electricity is Rs7.62 per unit.
The document further explained that if the surcharges of Rs7.52 and adjustments of 0.67 rupees per unit are removed, the electricity price would reduce to Rs25.20 per unit.
If these charges are eliminated, the current electricity rate of Rs45.06 per unit could be reduced to Rs20.04 per unit.
Winter Electricity Relief Package
In November 2024, Ministry of Water and Power rolled out new electricity relief package aimed at at increasing power consumption during the upcoming winter season.
The Power Division had announced that relief package would apply to extra electricity consumption in comparison to last year, offering a flat rate discount of up to Rs26 rupees and 7 paisa per unit. The package will be valid for three months, from December 2024 to February 2025.
