K-Electric (KE) has made various changes to the electricity tariff rates and its slab structure in line with the governing laws, rules and regulations of the Government of Pakistan and the National Electric Power Regulatory Authority (NEPRA). These changes will be implemented from July and will be applicable nationwide, including consumers in KE’s service area.
The determination of costs of electricity to be recovered from consumers across the country in their bills comes under jurisdiction of NEPRA and the Government of Pakistan, says a statement. These changes include the non-extension of relief for zero-rated industries as well as the relief on peak-hour electricity consumption for industrial consumers.
Meanwhile, the retailer tax with revised slabs has been introduced for commercial consumers and Non-Time of Use (Non-ToU) residential consumers will also see a revision in their applicable tariff along with changes in the methodology for their calculation.
Residential Consumers
As per SRO 1004 dated 7th July 2022, the tariff rates and slab structure for tariff of unprotected non-ToU residential consumers (i.e. consumers with sanctioned load below 5kW) has changed. According to the statement, “Protected” consumers, as per tariff terms proposed by the GoP under its Power Subsidy Rationalization Plan and by NEPRA are those non-ToU residential consumers who have monthly electricity usage of 200 units of less, consistently for the past 6 months.
Meanwhile, all other non-ToU residential consumers will fall in the unprotected category.
Previously, category of unprotected consumers were provided the benefit of one previous slab in their billing (i.e. their billing was done in two slabs), which has now been removed. Unprotected consumers will now only be charged on one slab in which their units fall.
Furthermore, the power tariff rates have also been adjusted downwards to minimize the impact on consumers.
Commercial/Industrial Consumers
Meanwhile, the industrial consumers were previously being provided a relaxation by GoP, allowing them to utilize electricity during peak hours at the same rates as off-peak hours. However, this relief was allowed until June 2022 and has now been removed with no further extension.
Peak rates would now be applicable on industrial consumers as well. Furthermore, the zero-rated (export oriented) industries were being provided electricity at a fixed cost of $0.09 per unit, which was applicable until June 2022 and has now been removed. These consumers will now be charged as per the applicable tariff to normal industrial consumers.
Fuel Charges Adjustment (FCA)
In addition to the above charges, it must also be noted that routine charges under FCA will be applicable in July bills within KE’s service territory.
According to the Finance Act 2022, the retailer tax on unregistered retailers have been revised as well and effective from 1 July 2022. The consumers on commercial tariff will be charged a minimum fixed tax of Rs. 3,000 for bills between Rs. 0 and Rs. 30,000. Meanwhile, the consumers will bills between Rs. 30,001 and Rs. 50,000 will be taxed Rs. 3,000 and those with bills above Rs. 50,000 will be taxed Rs. 10,000.
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