The National Electric Power Regulatory Authority (NEPRA) revealed a 491% increase in electricity costs from generation to consumer bill, according to its report.
Electricity generated at Rs 7.62 per unit is sold at Rs 45 per unit, with taxes and surcharges driving up prices significantly.
The NEPRA report highlights that Rs 15.28 per unit is added through taxes, Rs 17.01 per unit is added to energy payments to power producers, and surcharge for distribution and transmission inefficiency.
The ‘New Year’ surcharge of Rs 0.67 per unit also adds to the consumer burden.
Meanwhile, K-Electric has applied for a reduction of Rs 4.98 per unit under the fuel duty revision in November 2024, marking the third successive move to cut rates.
NEPRA is scheduled to review the application at a hearing on January 15, 2025.
The regulatory body stressed the need for urgent reforms in the field of improving power generation, governance of distribution companies, and promoting renewable energy.
NEPRA’s findings call for systemic changes to mitigate consumer costs and stabilize Pakistan’s energy sector.