The following factors could cause customers’ electricity bills to increase by an average of 60% across Pakistan in the coming months:
A. Ministry of Energy’s Revised Electricity Tariffs & Calculation Methodology:
The Ministry of Energy has increased basic tariff electricity rates by up to PKR 7.91 per unit for all customers across Pakistan. Additionally, the industrial and residential slab-based customers’ calculation methodologies have also been revised. According to Satutory Regulatory Order (SRO) released by Federal Ministry of Energy (Power Division) applicable from July to October 2022, electricity consumers will experience gradual tariff increases in line with the Government’s intention to eliminate subsidies. You might see several entries on your bill depending on how the tariff increases are implemented when they go into effect.
B. Higher Fuel Charge Adjustments (FCA)
The cost of producing electricity is rising due to global increase in fuel prices and the depreciation of Pakistani Rupee against dollars. According to mechanism set by National Electric Power Regulatory Authority (NEPRA) and Government of Pakistan, fuel price changes are passed through the directly through the consumers after as Fuel Charges Adjustments (FCA). Startup Pakistan recommends citizens to take in to account the impact of these higher fuel costs, especially during summers, as higher-than-normal Fuel Adjustments are likely until fuel prices decline internationally.
Amid these pressing times, it is crucial to ensure responsible usage of electricity to keep your electricity bills affordable for you.
You can reduce or at least manage the increase in your electricity bill by keeping in mind some important tips such as using electric appliances efficiently, for example: using air conditions at 26 degrees especially after peak hours, avoid operating heavy appliances like iron, water motors and microwaves during peak hours which are more expensive, utilize daylight as much as possible and try to switch to energy efficient equipment like LEDs and inverters where the opportunity presents itself.
