A formula has been devised to reduce electricity prices by over 15 rupees per unit in Islamabad. According to sources, NEPRA has submitted recommendations to the government, suggesting that prices can be reduced by rebalancing the tariff. This can be achieved by revising per-unit capacity payments, surcharges, addressing operational deficiencies, and reducing electricity prices.
Breaking down the current cost of electricity, which stands at Rs 45.06 per unit, reveals the following components:
– Capacity Charges: Rs 17.01 per unit
– Tax and Surcharge: Rs 15.28 per unit
– Distribution Margin: Rs 3.10 per unit
– Maintenance, Revenue Generation, and Adjustment: 1 paisa per unit
After applying surcharges and adjustments of Rs 7.52 and 67 paisa, respectively, the electricity price drops to Rs 25.20 per unit. Once these surcharges and adjustments are removed, the price further decreases to Rs 20.04 per unit.
