The government has prepared a formula to reduce electricity prices by 20 rupees per unit.
NEPRA has handed over a document based on recommendations to the government, stating that prices can be reduced through balance of tariff, capacity payments per unit, and revision of surcharges.
According to NEPRA’s document, operational inefficiencies can be improved to bring down electricity prices. The current price of electricity is 45 rupees and 6 paisas per unit, out of which 17 rupees and 1 paisa per unit are for capacity charges.
The document also states that 15 rupees and 28 paisas per unit are taxes and surcharges on the electricity tariff, and electricity distribution companies take a distribution margin of 3 rupees and 10 paisas from consumers.
NEPRA has mentioned that one paisa per unit is collected under the names of repairs, revenue generation, and adjustment for the next year. One rupee and 37 paisas per unit are for transmission charges, and the net average production cost of electricity is 7 rupees and 62 paisas per unit.
The document submitted to the government also states that if the surcharges of 7 rupees and 52 paisas and the 67 paisa adjustment are removed, the price of electricity would be 25 rupees and 20 paisas per unit. If this is removed, the current price of 45 rupees and 6 paisas per unit will be reduced to 20 rupees and 4 paisas.
