The FESCO unit price rate or tariff is an important aspect of the electricity sector in Pakistan. It refers to the amount that consumers are charged for the electricity they use. The FESCO unit price rate is determined by a number of factors, including the cost of generating and distributing electricity, as well as government policies and regulations.
A-1 GENERAL SUPPLY TARIFF RESIDENTIAL
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES Rs/kW/M | Uniform Determind With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh | |||
|---|---|---|---|---|---|---|---|
| A | B | C | |||||
| a) | For sanctioned load less than 5 kW | ||||||
| Protected | i | Up to 50 Units – Life Line | – | 6.76 | 3.95 | ||
| ii | 51-100 Units – Life Line | 11.41 | 7.74 | ||||
| iii | 001-100 Units | 13.51 | 7.74 | ||||
| iv | 101 – 200 Units | – | 15.78 | 10.06 | |||
| Un-Protected | v | 001 – 100 Units | – | 22.51 | 16.48 | ||
| vi | 101 – 200 Units | – | 27.16 | 22.95 | |||
| vii | 201 – 300 Units | – | 30.00 | 27.14 | |||
| viii | 301 – 400 Units | – | 33.04 | 32.03 | |||
| ix | 401 – 500 Units | – | 35.26 | 35.24 | |||
| x | 501 – 600 Units | – | 36.50 | 36.66 | |||
| xi | 601 – 700 Units | – | 37.90 | 37.80 | |||
| xii | Above 700 Units | – | 42.95 | 42.72 | |||
| b) | For Sanctioned load 5 kW & above | Peak | Off-Peak | Peak | Off-Peak | ||
| Time of use | – | 38.54 | 32.25 | 41.89 | 35.57 | ||
As per Authority’s decision only protected residential consumers will be given the benefits of only one previous slab.
As per Authority’s decision residential life line consumers will not be given any slab benefit.
Under tariff A-1, there shall be minimum monthly customer charge at the following rates even if no energy is consumed.
a) Single Phase Connections: Rs. 75/- per consumer per month
b) Three Phase Connections: Rs. 150/- per consumer per month
A-2 GENERAL SUPPLY TARIFF COMMERCIAL
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES Rs/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh | ||
|---|---|---|---|---|---|---|
| A | B | C | ||||
| a) | For sanctioned load less than 5 kW | 37.37 | 37.75 | |||
| b) | For sanctioned load 5 kW & above | 500.00 | 39.73 | 39.43 | ||
| Peak | Off-Peak | Peak | Off-Peak | |||
| c) | Time of use | 500.00 | 40.18 | 34.25 | 41.35 | 35.38 |
| d) | Electric Vehicle Charging Station | 37.10 | 39.43 | |||
Under Tariff A-2(a), there shall be minimum monthly charges at the following rates even if no energy is consumed.
a) Single Phase Connections: Rs. 175/- per consumer per month
b) Three Phase Connections: Rs. 350/- per consumer per month
Fixed charges shall be billed based on 50% of sanctioned load of Actual MDI for the month which ever is higher. In such case there would be no minimum monthly charges even if no energy is consumed.
A-3 GENERAL SERVICES
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh |
|---|---|---|---|---|
| A | B | C | ||
| a) | General Services | – | 37.74 | 37.31 |
Under Tariff A-3, there shall be minimum monthly charges at the following rates even if no energy is consumed.
a) Single Phase Connections: Rs. 175/- per consumer per month
b) Three Phase Connections: Rs. 350/- per consumer per month
B -INDUSTRIAL SUPPLY TARIFFS
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh | ||
|---|---|---|---|---|---|---|
| A | B | C | ||||
| B1 | Upto 25 kW (at 400/230 Volts) | 34.38 | 34.33 | |||
| B2(a) | Exceeding 25-500 kW (at 400 Volts) | 500.00 | 34.22 | 38.83 | ||
| Time of Use | Peak | Off-Peak | ||||
| B1(b) | Up to 25kW | 37.47 | 31.80 | 37.89 | 32.33 | |
| B2(b) | Exceeding 25-500 kW (at 400 Volts) | 500.00 | 37.20 | 31.49 | 37.83 | 32.12 |
| B3 | For all loads upto 5000 kW (at 11,33) | 460.00 | 36.41 | 30.84 | 37.83 | 32.03 |
| B4 | For all loads (at 66,132 kV and above) | 440.00 | 36.38 | 30.20 | 37.83 | 31.93 |
For B1 & B1(b) Consumers there shall be a fixed minimum charge of Rs. 350/- per month
Fixed Charges shall be billed based on 50% of sanctioned Load or actual MDI for the month which ever is higher. In such cases there would be no minimum monthly charges even if no energy is consumed
C – SINGLE POINT SUPPLY
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh | ||
|---|---|---|---|---|---|---|
| A | B | C | ||||
| C-1 | For supply at 400/230 Volts | |||||
| a) | Sanctioned load less than 5 kW | – | 44.23 | 38.43 | ||
| b) | Sanctioned load from 5 kW & 500 kW | 500.00 | 43.18 | 37.93 | ||
| C-2(a) | For supply at 11,33 kV up to and including 5000 kW | 460.00 | 36.63 | 37.73 | ||
| C-3(a) | For supply at 66 kv & above and sanctioned load above 5000 kW | 440.00 | 35.89 | 37.63 | ||
| Time of Use | Peak | Off-Peak | Peak | Off-Peak | ||
| C-1(c) | For supply at 400/230 Volts 5 kW & upto 500 kW | 500.00 | 43.07 | 36.79 | 41.35 | 34.75 |
| C-2(b) | For supply at 11,33 kV up to and including 5000 kW | 460.00 | 40.46 | 34.01 | 41.35 | 34.55 |
| C-3(b) | For supply at 66 kV & above and sanctioned load above 5000 kW | 440.00 | 35.87 | 29.10 | 41.35 | 34.45 |
Fixed Charges Shall be billed on the based on 50% of sanctioned Load or Actual MDI for the month which ever is higher
D – AGRICULTURE TARIFF
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh | ||
|---|---|---|---|---|---|---|
| A | B | C | ||||
| D1(a) | SCARP less than 5 kW | – | 37.73 | 34.43 | ||
| D2(a) | Agricultural Tube Wells | 200.00 | 31.34 | 24.10 | ||
| Peak | Off-Peak | Peak | Off-Peak | |||
| D1(b) | SCARP 5 kW & above | 200.00 | 46.80 | 38.54 | 37.35 | 30.10 |
| D2(b) | Agricultural 5 kW & above | 200.00 | 24.68 | 24.58 | 24.10 | 24.10 |
Under this tariff, there shall be minimum monthly charges Rs.2000/-per consumer per month, even if no energy is consumed.
Note:- The consumers having sanctioned load less than 5 kW can opt for TOU metering.
E – TEMPORARY SUPPLY TARIFFS
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh |
|---|---|---|---|---|
| A | B | C | ||
| E-1(i) | Residential Supply | – | 37.89 | 42.03 |
| E-1(ii) | Commercial Supply | – | 35.47 | 38.14 |
| E-2 | Industrial Supply | – | 33.62 | 35.41 |
For the categories of E-1(i&ii) above, the minimum bill of the consumers shall be Rs.50/- per day subject to a minimum of Rs.500/- for the entire period of supply, if no energy is consumed.
F – SEASONAL INDUSTRIAL SUPPLY TARIFFS
| 125% of relevant industrial tariffNote:- Tariff-F consumers will have the option convert to Regular Tariff and vice versa. This option can be exercised at the time of a new connection or at the beginning of the season. Once exercised, the option remain in force for at least one year. |
G – PUBLIC LIGHTING
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh |
|---|---|---|---|---|
| A | B | C | ||
| 01 | Street Lighting | – | 38.53 | 37.43 |
Under Tariff G, there shall be a minimum monthly charge of Rs.500/-per month per kW of lamp capacity installed.
H – RESIDENTIAL COLONIES ATTACHED TO INDUSTRIAL PREMISES
| SR NO. | TARIFF CATEGORY/PARTICULARS | FIXED CHARGES R/s/kW/M | Uniform Determined With PYA VARIABLE CHARGES Rs/kWh | GoP Applicable July 2023 Variable Charges Rs/kWh |
|---|---|---|---|---|
| A | B | C | ||
| 01 | Residential Colonies attached to industrial premises | – | 37.75 | 37.43 |
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Electricity tariffs in Pakistan have been a topic of discussion for many years. The government has been working to reduce the cost of electricity for consumers, while also ensuring that the sector remains financially sustainable. In recent years, FESCO has implemented a number of measures to improve the efficiency of its operations and reduce costs, which has resulted in lower tariffs for consumers. However, there are still concerns about the affordability of electricity for low-income households, and the government continues to explore ways to address this issue.
Understanding Fesco Unit Price Rate
Fesco, short for Multan Electric Supply Company, is a leading power distribution company in Pakistan. The company provides electricity to over 2.8 million customers in the Multan Capital Territory, Rawalpindi, Attock, and Jhelum districts.
One of the key aspects of Fesco’s pricing structure is the unit price rate, which is the amount of money that customers pay per unit of electricity consumed. The unit price rate is determined by a number of factors, including the cost of generating and distributing electricity, government regulations, and market conditions.
Customers can find their unit price rate on their electricity bills, which are typically issued on a monthly basis. The unit price rate is based on the number of units of electricity that customers consume during the billing period, with higher rates applying to higher levels of consumption.
It’s important for customers to understand their unit price rate, as it can have a significant impact on their monthly electricity bills. By monitoring their consumption and taking steps to reduce their energy usage, customers can lower their bills and save money over time.
Overall, the unit price rate is a key component of Fesco’s pricing structure, and understanding how it works can help customers make informed decisions about their energy usage and spending.
Historical Overview of Fesco Tariff
Fesco, or Multan Electric Supply Company, is responsible for providing electricity to the Multan Capital Territory, Rawalpindi, Attock, and Jhelum districts. The company has been in operation since 1998 and has undergone several changes in its tariff rates over the years.
In 2002, Fesco introduced a new tariff structure, which included a fixed charge and a variable charge based on the number of units consumed. The fixed charge was set at Rs. 50 per month, while the variable charge ranged from Rs. 3.50 to Rs. 6.50 per unit, depending on the amount of electricity consumed.
In 2011, Fesco revised its tariff rates and introduced a new system based on the time of day. Under this system, customers were charged different rates depending on the time of day they used electricity. The peak hours were from 6 pm to 10 pm, and during this time, the tariff rate was Rs. 15 per unit. The off-peak hours were from 10 pm to 6 am, and the tariff rate was Rs. 6.50 per unit.
In 2015, Fesco revised its tariff rates again and introduced a new system based on the number of units consumed. Under this system, customers were charged different rates depending on the number of units they consumed. The first 100 units were charged at Rs. 8.11 per unit, while the next 100 units were charged at Rs. 10.20 per unit. The rate increased to Rs. 16.36 per unit for units consumed above 300.
In 2018, Fesco revised its tariff rates once again and introduced a new system based on the fuel price adjustment mechanism. Under this system, the tariff rate was adjusted every month based on the cost of fuel used to generate electricity. The fixed charge was set at Rs. 250 per month, while the variable charge ranged from Rs. 11.17 to Rs. 15.66 per unit, depending on the fuel price.
Overall, Fesco’s tariff rates have undergone several changes over the years, with the company introducing new systems and adjusting rates based on various factors.
Current Fesco Unit Price Rate
Fesco (Multan Electric Supply Company) is a power distribution company that supplies electricity to the Multan Capital Territory and Rawalpindi district. The unit price rate of Fesco is subject to change from time to time.
As of October 2023, the current Fesco unit price rate for domestic consumers is Rs. 20.70 per unit for the first 200 units consumed. For the next 100 units, the rate is Rs. 22.80 per unit, and for the remaining units, the rate is Rs. 24.90 per unit.
For commercial consumers, the unit price rate varies depending on the type of connection and the amount of electricity consumed. The details of the current rates can be obtained from the Fesco website or by contacting their customer service center.
It is important to note that the unit price rate also includes various surcharges and taxes, such as the fuel adjustment surcharge and the general sales tax. These charges can significantly affect the overall electricity bill of consumers.
Consumers can also take advantage of various Fesco policies and initiatives to reduce their electricity bills, such as the net metering system for solar panels and the time-of-use tariff for electric vehicle charging.
Overall, it is important for consumers to stay informed about the current Fesco unit price rate and to take steps to manage their electricity consumption to reduce their bills.
Factors Influencing Fesco Tariff
The unit price rate or tariff of Fesco is influenced by several factors. These factors can be broadly categorized into two main categories: internal and external factors.
Internal Factors
The internal factors that influence the Fesco tariff include the cost of production, maintenance and repair expenses, and administrative costs. The cost of production is directly related to the amount of electricity generated by Fesco. The higher the production cost, the higher the tariff charged to the consumers. Similarly, the maintenance and repair expenses incurred by Fesco also affect the tariff rate. If the maintenance and repair expenses are high, Fesco will have to charge a higher tariff to cover those expenses.
Another internal factor that affects the Fesco tariff is the administrative costs. These costs include salaries of employees, rent of offices, and other administrative expenses. The higher the administrative costs, the higher the tariff charged to the consumers.
External Factors
The external factors that influence the Fesco tariff include the cost of fuel, inflation, and government policies. The cost of fuel is a major determinant of the Fesco tariff. If the cost of fuel increases, the cost of production of electricity also increases, resulting in a higher tariff rate.
Inflation is another external factor that affects the Fesco tariff. If the inflation rate is high, the cost of production and administrative expenses also increase, leading to a higher tariff rate.
Lastly, government policies also play a crucial role in determining the Fesco tariff. The government may introduce policies that increase or decrease the tariff rate. For example, the government may provide subsidies to Fesco, which can reduce the tariff rate for consumers.
In conclusion, the Fesco tariff is influenced by several factors, both internal and external. Consumers should be aware of these factors to understand the reasons behind the changes in the tariff rate.
Comparative Analysis of Fesco Tariff
Domestic vs Commercial Rates
Fesco’s tariff structure is divided into two main categories: domestic and commercial. The domestic tariff is applicable to households, while the commercial tariff is applicable to businesses and industries. The tariff rates for both categories are different due to the difference in consumption patterns and load requirements.
The domestic tariff is lower than the commercial tariff as households generally consume less electricity compared to businesses and industries. The tariff for domestic consumers is based on a two-tier system, where the first 50 units are charged at a lower rate, and the remaining units are charged at a higher rate. On the other hand, commercial consumers are charged a flat rate per unit without any tier system.
Peak vs Off-Peak Rates
Fesco’s tariff structure also includes peak and off-peak rates. Peak hours are defined as the time when the demand for electricity is at its highest, while off-peak hours are the time when the demand is low.
During peak hours, the tariff rate is higher compared to off-peak hours. This is done to discourage the consumption of electricity during peak hours and encourage consumers to shift their consumption to off-peak hours. The peak hours for Fesco are from 7 pm to 11 pm, while the off-peak hours are from 11 pm to 7 am.
In summary, Fesco’s tariff structure is designed to encourage the efficient use of electricity. By charging higher rates during peak hours and for commercial consumers, Fesco aims to reduce the overall demand for electricity and promote energy conservation.
Regulations Governing Fesco Tariff
The Multan Electric Supply Company (FESCO) is regulated by the National Electric Power Regulatory Authority (NEPRA) and follows the guidelines set by the authority for determining the tariff rates. The following regulations govern the FESCO tariff:
Multi-Year Tariff (MYT)
FESCO, like other power distribution companies in Pakistan, operates under the Multi-Year Tariff (MYT) framework. The MYT is a regulatory mechanism that determines the tariff for a period of three to five years, depending on the period specified by NEPRA. The MYT framework allows companies to plan their investments and operations based on a predictable tariff regime.
Tariff Determination Methodology
NEPRA determines the tariff for FESCO based on a cost-plus approach. The methodology includes the following components:
- Cost of generation, transmission, and distribution
- Return on equity
- Depreciation
- Interest on loans
- Operation and maintenance expenses
- Taxes and levies
The tariff is determined by adding up the above components and dividing the total by the total units of electricity sold.
Tariff Categories
NEPRA has defined different tariff categories based on the type of consumer. The categories include:
- Domestic
- Commercial
- Industrial
- Agricultural
- Bulk supply
Each category has a different tariff rate, which is determined based on the cost of supplying electricity to that category.
Tariff Adjustments
NEPRA allows FESCO to adjust the tariff during the MYT period if there are changes in the cost of generation, transmission, and distribution. The adjustments are made based on a pre-determined formula that takes into account the changes in the cost components.
In conclusion, FESCO follows the regulations set by NEPRA for determining the tariff rates. The MYT framework, cost-plus approach, tariff categories, and tariff adjustments are some of the key components of the FESCO tariff regime.
Future Predictions for Fesco Tariff
As the electricity demand continues to rise in Pakistan, the government has been increasing the tariff rates to cover the costs of production and distribution. The future predictions for Fesco tariff suggest that the trend of increasing rates is likely to continue in the upcoming years.
According to the National Electric Power Regulatory Authority (NEPRA), Fesco has proposed an increase of 19.5% in the tariff rates for the year 2024-25. The proposal is currently under review, and the final decision will be made by NEPRA after taking into account various factors such as fuel prices, inflation, and exchange rates.
Moreover, the government is also planning to introduce a new slab system for domestic consumers, which will divide the consumers into different categories based on their electricity consumption. The new system is expected to be implemented in the next few years and will result in an increase in the tariff rates for high-consumption users.
It is important to note that the future predictions for Fesco tariff are subject to change depending on various economic and political factors. However, it is safe to assume that the trend of increasing rates is likely to continue in the foreseeable future.
Conclusion
In conclusion, the FESCO unit price rate or tariff is an important factor that affects the electricity bills of consumers in the FESCO region. The unit price rate is determined by various factors such as fuel prices, generation capacity, and transmission and distribution costs.
Consumers can monitor their electricity consumption and take measures to reduce their usage during peak hours to avoid paying higher rates. It is also important for consumers to be aware of any changes in the unit price rate and adjust their consumption accordingly.
Overall, the FESCO unit price rate is a complex issue that requires careful consideration and analysis. It is important for all stakeholders, including consumers, regulators, and electricity providers, to work together to ensure a fair and sustainable pricing system that benefits everyone.