Electricity consumers across Pakistan will face higher electricity prices this month, with an increase of Rs1.87 per unit. The hike affects consumers nationwide, including Karachi, despite 76 percent of power generation coming from cheaper domestic sources. The increase comes from an 8-paise higher fuel cost adjustment (FCA) for August and the expiry of a Rs1.79 negative FCA applied in September bills.
According to the National Electric Power Regulatory Authority (Nepra), some consumers who already received their bills will see the impact in November. The authority issued its notification after a two-week delay, following a public hearing on September 29. Nepra said the revised FCA of Rs0.0796 per kilowatt-hour will apply to all categories except lifeline users, protected consumers, prepaid users, and electric vehicle charging stations.
READ MORE:NEPRA raises power tariff by Rs 0.08 paisa per unit
Nepra’s Member Technical, Rafique A. Shaikh, disagreed with the decision. He criticized shifting the burden of inefficiencies onto consumers who are not responsible for the power sector’s failures. He emphasized that the sector has struggled with mismanagement and lack of reforms since the early 1990s, when privatization was first introduced to improve efficiency and transparency.
Mr. Shaikh highlighted that despite decades of restructuring plans, the power sector remains trapped in inefficiencies. Public sector entities have accumulated trillions of rupees in losses due to poor planning and execution. He warned that without genuine reforms, the sector’s sustainability and service delivery will remain at risk.
READ MORE:Pakistan moves to uniform electricity tariffs nationwide
Experts say the continued inefficiency, including costly operations like the Guddu power plant running in open-cycle mode, adds pressure on electricity prices. These operational flaws have cost billions of rupees, leaving consumers to pay the price once again for systemic failures.