Electricity prices experience both increase and decrease, causing mixed relief

While there is some relief in the form of a minor decrease in monthly fuel adjustment charges, a significant increase has been approved under the quarterly adjustment framework.

In a recent decision, NEPRA has approved a reduction of 37 paisas per unit in electricity rates as part of the monthly fuel adjustment for September. This reduction is expected to provide some financial relief to consumers on their upcoming electricity bills.

However, in contrast, NEPRA has also approved a substantial increase of Rs1.75 per unit as part of the fourth-quarter adjustment for the financial year 2023-24. This quarterly adjustment will result in higher electricity costs for consumers, with the additional charges set to be collected in the bills for September, October, and November.

The decision regarding the quarterly adjustment has been forwarded to the federal government for implementation, meaning that while consumers may see some relief in their September bills due to the fuel adjustment, they will also face a notable increase in overall electricity costs due to the quarterly adjustment.