The National Electric Power Regulatory Authority (Nepra) on Thursday allowed the federal government to go ahead with a quarterly tariff adjustment of Rs2.75 per unit for all consumers across the country for three months — April to June — with additional revenue impact going beyond Rs85 billion.

The increase was allowed under quarterly tariff adjustment (QTA) for the second quarter — October to December 2023 — of the current fiscal year.

The Ministry of Energy’s Power Division said electricity bills would be reduced by Rs1.68 per unit compared to last month as a result of the price adjustment.

Documents released by Nepra on its website said the tariff adjustment would apply to all consumer categories, except lifeline consumers, including both consumers of ex-Wapda distribution companies and K-Electric.

A letter said the authority’s decision was being sent to the federal government for intimation and action before its notification by Nepra.

The authority said it had applied the hike “in the interest of consumers” from April onwards after the expiry of existing applicable quarterly adjustments in March.

Power distribution companies had in January come up with a fresh claim of another Rs82bn for the second quarter (October-December) of the current fiscal year to be charged to consumers at the rate of about Rs4.5 per unit for three months.

In their separate tariff petitions, the Discos have sought to raise about Rs81.5bn from their consumers in three coming months under the quarterly tariff adjustment (QTA) for the October-December 2023 period.

The companies sought the increase to finance the additional financial impact of capacity charges arising out of currency devaluation and the interest rate hike besides the market operator fee, the impact of transmission and distribution losses on fuel cost adjustments, the cost of incremental consumption and variable operation and maintenance charges for the second quarter of the current fiscal year.

At present, the consumers are paying about Rs3.28 per unit QTA for the fourth quarter of the last fiscal year that would remain applicable for six months — from October 2023 to March 2024 — to mop up more than Rs200bn from power consumers across the country, including those of K-Electric.

Another QTA for July-September 2023 is also being charged to consumers at the rate of Rs1.15 per unit for the billing period of January to March 2024 to raise another Rs22.3bn.