Power consumers to pay Rs1,952bn capacity charges in FY25

For the outgoing financial year, the capacity charges revenue target was set at Rs1,874 billion

By Khalid Mustafa
June 22, 2024
A representational image of a transmission tower, also known as an electricity pylon. — AFP/File

ISLAMABAD: The electricity consumers will pay in the whole FY25 a huge amount of Rs1,952 billion as capacity charges which will Acontribute Rs18.39 per unit to the new power purchase price (PPP) of Rs30.88 per unit for the next financial year.

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For the outgoing financial year, the capacity charges revenue target was set at Rs1,874 billion and in the power purchase price, the consumers are paying Rs17.02 per unit till June 30, 2024. The power purchase price of Discos (electric power distribution companies) has increased by Rs4.86 per unit (18.677%) to Rs 30.88 per unit for FY25 from Rs26.02 in FY24, says a Nepra communiqué sent to the government. However, the consumers will pay Rs1,161 billion during FY25 in the head of energy charges which will contribute Rs10.94 per unit to the power purchase price. They will pay Rs153.755 billion in FY25, contributing Rs 1.54 per unit to the power purchase price of Discos.

However, in the increase of Rs5.72 per unit in the base tariff, the energy charges contribute Rs3.31 per unit and capacity charges Rs1.38 per unit. In the outgoing financial year, the increase in base tariff was at Rs 4.96 per unit which has now increased to Rs5.72 per unit, showing an increase of 15.32 per cent. With Rs0.17 per unit, the Discos margin is Rs 0.58 with the prior years’ adjustments of Rs0.27 per unit. With the increase in the base tariff, Discos will earn Rs486.799 billion more in FY25. However, with the new base tariff at Rs35.50 per unit, Discos will earn Rs3.767 trillion from Rs3.281 trillion with the base tariff of Rs29.78 per unit set for FY24.

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