Pakistan Web Desk: In a significant development, power distribution companies have submitted applications to the National Electric Power Regulatory Authority (NEPRA) to transfer over Rs. 52 billion in relief to electricity consumers under the quarterly adjustment mechanism.
Impact of IPP Shutdowns Expected Soon
The shutdown of five Independent Power Producers (IPPs) is set to bring noticeable effects in the coming months. According to NEPRA, applications requesting relief amounting to Rs. 52.12 billion have been received as part of the second-quarter adjustment for the current financial year.
Breakdown of the Requested Adjustments
As per the details provided by NEPRA:
- A reduction of Rs. 50.66 billion has been requested under capacity charges.
- Transmission and distribution losses adjustments seek a reduction of Rs. 2.66 billion.
- However, an increase of Rs. 2.69 billion has been requested under operations and maintenance costs.
Impact on K-Electric Consumers
The adjustments for the October–December 2024 quarter will also apply to K-Electric consumers, impacting electricity tariffs in Karachi and across the country.
Public Hearing Scheduled for February 12
NEPRA has scheduled a public hearing on February 12 to review these applications. Any decision taken will have nationwide implications for electricity consumers, including those in Karachi.
How Much Will Electricity Prices Drop?
NEPRA sources indicate that it is too early to determine exactly how much the per-unit cost of electricity will decrease. The final decision will be based on the evaluation of these requests during the hearing.
Why Is This Relief Happening?
A major factor behind this expected relief is the government’s decision to shut down five IPPs with a combined capacity of 2,400 megawatts following negotiations. This move has played a key role in potentially reducing consumer electricity costs by over Rs. 52 billion.
This development brings hope for millions of electricity consumers who have been burdened by high tariffs. The final verdict from NEPRA will determine how much relief will actually reach the public.