Rs20 per unit decrease in electricity prices proposed

The National Electric Power Regulatory Authority (NEPRA) has proposed to reduce electricity rates by Rs20 per unit.

NEPRA outlined the “Balance of Tariff” method, which enables a reduction in electricity rates by revising capacity payments and surcharges.

Currently, the electricity price stands at Rs45.06 per unit, divided across several components: capacity charges at Rs17.01 per unit, taxes and surcharges at Rs15.28 per unit, and distribution margins collected by electricity companies at Rs3.10 per unit.

Moreover, 1 paisa per unit is charged for repairs, revenue collection, and future adjustments, while transmission charges account for Rs1.37 per unit. The average net generation cost is Rs7.62 per unit.

If surcharges of Rs7.52 and adjustments of Rs0.67 per unit are removed, the electricity price could drop to Rs25.20 per unit. Eliminating these charges entirely could further lower the rate from Rs45.06 per unit to Rs20.04 per unit, providing much-needed relief to consumers during the winter season.