Government Rejects Increasing Electricity Tariffs for Consumers

Government Rejects Increasing Electricity Tariffs for Consumers

Government rejects increasing electricity tariffs for consumers

On Saturday, the federal government made it clear that it is not raising electricity rates for consumers, but only allowing quarterly adjustments.

The quarterly adjustment of Rs 3.644/unit is for the quarter (April to June) 2021-22, which will not increase the bill as the tariff schedule (SoT) communicated by the government is maintained in the first quarter of 2022-23.

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However, state power distribution companies will charge an additional Rs0.1918/unit in their October electricity bill as per regulator guidance due to fuel cost adjustment (FCA) for August. This fix is ​​only valid for one month.

Also, electricity tariffs were reduced by Rs 4.15 per unit in October compared to September under the Fuel Cost Adjustment Mechanism (FCA).

The day before it was reported that the government had raised electricity tariffs, which is not true, the Energy Department said. However, quarterly adjustments and FCA have been reported.

The Energy Minister said that with domestic electricity prices soaring, the government decided not to increase electricity rates and continue with the quarterly adjustments already included in the September electricity bill.

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In a statement, he said the National Electricity Regulatory Authority (NEPRA) announced its decision on October 14 on the fourth quarterly adjustment for 2021-2022. This amount will be replaced by electricity consumers in the next four months from October 2022 to January 2023.

The Department has requested NEPRA to “make Quarterly Adjustments for Q4 FY22 for a four month period from October to January 2023 while maintaining the existing Tariff Schedule (SoT) set by the Government for Q-4 FY20, Q-1, 2 & 3 FY21 and Q -2 FY22 ends in September 2022.”

Government rejects increasing electricity tariffs for consumers