A recent report by NEPRA has highlighted a significant gap between the actual cost of generating electricity and what consumers are paying. While the cost of generating one unit of electricity is Rs7.62, the amount charged to consumers is much higher at Rs45 per unit. This steep increase is due to various taxes, charges, and additional costs.
The breakdown reveals that Rs15.28 is added for taxes, Rs3.10 is allocated for distribution companies, and Rs17.01 goes towards capacity payments. These components combine to create a heavy financial burden for consumers.
In a positive development, K-Electric has proposed reducing tariffs by Rs4.98 per unit under the Fuel Charges Adjustment (FCA) for November 2024. If approved, this adjustment could provide some much-needed relief to electricity users.
NEPRA is set to review K-Electric’s request in a hearing scheduled for January 15, 2025. A final decision will determine whether this reduction will be implemented, offering potential financial relief for many households and businesses struggling with high electricity costs.
