The government on Tuesday projected the collection of an additional Rs. 132 billion annually from power consumers through fixed charges across various domestic categories during a public hearing conducted by the National Electric Power Regulatory Authority (NEPRA).
Chaired by NEPRA Chairman Waseem Mukhtar, the hearing saw officials of the Power Planning and Monitoring Company briefing the regulator on the proposed structure of fixed charges, which are being imposed to fund the reduction of Rs. 4.04/unit in electricity tariffs for industry.
Under the proposal, fixed charges would be extended to households consuming up to 300 units per month, including protected consumers. Previously, only non-protected users consuming more than 300 units were subject to fixed charges. For protected consumers, the proposal suggests a fixed charge of Rs. 200 per month for those using up to 100 units and Rs. 300 for those consuming up to 200 units.
For non-protected consumers, the proposed fixed charges include Rs. 275 per month for consumption up to 100 units, Rs. 300 for up to 200 units and Rs. 350 for up to 300 units.
Fixed charges for non-protected consumers using 301-400 units are proposed to rise to Rs. 400 from the existing Rs. 200, while those consuming 401-500 units would pay Rs. 500 against the previous Rs. 400. For users consuming 600 units, fixed charges would increase to Rs. 675 from Rs600 earlier. By contrast, users consuming up to 700 units would see their fixed charges reduced to Rs. 675 from the earlier Rs. 800, while those consuming more than 700 units would see a reduction of Rs. 325 to Rs. 675.
The new fixed charges are expected to generate Rs. 101 billion annually due to a reduction of up to Rs. 1.53/unit in electricity tariffs. During the briefing, officials said the additional revenue would help lower electricity costs for industry, improving competitiveness and easing pressure on exports.
The Power Division’s proposal also includes reductions in per-unit tariffs for domestic consumers. Households using up to 400 units would receive relief of Rs. 1.53/unit, while those consuming up to 500 units would see a cut of Rs. 1.25/unit. For 600-unit consumers, the proposed reduction is Rs. 1.40/unit, while those using up to 700 units would receive a reduction of 91 paisa per unit. Anyone availing more than 700 units would only see a cut of 49 paisa per unit.