Awais Leghari Explains Electricity Tariff Adjustments, Dispels Price Rise Myths

Federal Energy Minister Awais Leghari shed light on the process of electricity pricing in Pakistan during a media interaction, clarifying that the responsibility for setting power tariffs lies with the National Electric Power Regulatory Authority (NEPRA).

Leghari explained that NEPRA determines electricity prices through two main factors: quarterly tariff adjustments and monthly fuel adjustment charges. He emphasized that petitions are regularly submitted to establish these rates, but NEPRA’s decisions are often misunderstood by the public and the media.

“Many of NEPRA’s decisions are misinterpreted due to a lack of understanding within the media,” Leghari pointed out.

He further mentioned that NEPRA recently reviewed a petition on August 26, which will lead to an increase of 96 paisas per unit in electricity bills from September to November as part of the quarterly adjustment.

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However, Leghari also noted that fuel adjustment charges are expected to decrease by Rs2.87 per unit, resulting in an overall reduction of Rs2.37 per unit in consumers’ bills.

Addressing public concerns, Leghari remarked that the common belief that electricity prices are constantly rising is often due to misunderstandings of the adjustment mechanisms. “There is a misconception that electricity rates are always going up, but in reality, these changes are driven by specific regulatory processes,” he stated.

Recently, the federal government introduced a comprehensive reform plan for the power sector, including short-term and mid-term measures. These reforms aim to eliminate cross-subsidies, revise taxes, and boost electricity demand during the winter months.

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