The IESCO 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 IESCO 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.
| S.R.O 938 (I)/2023 | July , 2023 | |||||
| A-1 GENERAL SUPPLY TARIFF – RESIDENTIAL | ||||||
| Sr. No. | TARIFF CATEGORY / PARTICULARS | FIXED CHARGES Rs/kW/M | APPLICABLE VARIABLE CHARGES Rs./kWh | |||
| a) | For Sanctioned load up to 5 kW | – | – | – | ||
| Protected | ||||||
| i | Up to 50 Units – Life Line | – | – | 3.95 | ||
| ii | 01 – 100 Units – Life Line | – | – | 7.74 | ||
| iii | 001 – 100 Units | – | – | 7.74 | ||
| iv | 101 – 200 Units | – | – | 10.06 | ||
| Un-Protected | ||||||
| v | 1- 100 Units | – | – | 16.48 | ||
| vi | 101- 200 Units | – | – | 22.95 | ||
| vii | 201- 300 Units | – | – | 27.14 | ||
| viii | 301- 400 Units | – | – | 32.03 | ||
| ix | 401 – 500 Units | – | – | 35.24 | ||
| x | 501 – 600 Units | – | – | 36.66 | ||
| xi | 601 – 700 Units | – | – | 37.80 | ||
| xii | Above 700 Units | – | – | 42.72 | ||
| b) | For Sanctioned load 5 kW & above | – | – | – | ||
| Peak | Off-Peak | |||||
| Time Of Use | – | 41.89 | 35.57 | |||
| As per the Authority’s decision only protected residential consumers will be given the benifits of one previous slab. | ||||||
| As per Authority decision, residestial Life Line consumer 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 | ||||||
| a) | For Sanctioned load upto 5 kW | – | – | 37.75 | ||
| b) | For Sanctioned load 5 kW & above | 500 | – | 39.43 | ||
| – | Peak | Off-Peak | ||||
| c) | Time Of Use | 500 | 41.35 | 35.38 | ||
| d) | Electric Vehicle Charging Station | – | 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 | |||||
| Fix Charges shall be billed based on 50% off sactioned load or 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 | ||||||
| a) | General Services | – | – | 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 | ||||||
| B1 | Up To 25 kW (at 400/230 Volts) | – | – | 34.33 | ||
| B2(a) | Exceeding 25-500 kW (at 400 Volts) | 500 | – | 33.83 | ||
| Time Of Use | Peak | Off-Peak | ||||
| B1(b) | Upto 25 kW | – | 37.89 | 32.33 | ||
| B2(b) | Exceeding 25-500 kW (at 400 Volts) | 500 | 37.83 | 32.12 | ||
| B3 | For All Loads up to 5000 kW (at 11,33 kV) | 460 | 37.83 | 32.03 | ||
| B4 | For All Loads (at 66,132 kV & above) | 440 | 37.83 | 31.93 | ||
| For B1 and B1 (b) consumers there shall be a fixed minimum charge of Rs. 350 per month. | ||||||
| Fixed charges shall be build based on 50% of sactioned load or 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. | ||||||
| C – SINGLE-POINT SUPPLY | ||||||
| C -1 | For supply at 400/230 Volts | – | – | – | ||
| a) | Sanctioned load less than 5 kW | – | – | 38.43 | ||
| b) | Sanctioned load above 5 kW & up to 500 kW | 500 | – | 37.93 | ||
| C -2(a) | For supply at 11,33 kV up to and including 5000 kW | 460 | – | 37.73 | ||
| C -3(a) | For supply at 66 kV & above and sanctioned load above 5000 kW | 440 | – | 37.63 | ||
| Time Of Use (Optional) | Peak | Off-Peak | ||||
| C -1(c) | For supply at 400/230 Volts above 5 kW & up to 500 kW | 500 | 41.35 | 34.75 | ||
| C -2(b) | For supply at 11,33 kV up to and including 5000 kW | 460 | 41.35 | 34.55 | ||
| C -3(b) | For supply at 66 kV & above and sanctioned load above 5000 kW | 440 | 41.35 | 34.45 | ||
| Fixed charges shall be build based on 50% of sactioned load or actual MDI for the month which ever is higher. | ||||||
| D – AGRICULTURE TARIFF | ||||||
| D-1(a) | SCARP less than 5 kW | – | – | 34.43 | ||
| D-2(a) | Agricultural Tube Wells | 200.00 | – | 24.10 | ||
| – | Peak | Off-Peak | ||||
| D-1(b) | SCARP 5 kW & above | 200.00 | 37.35 | 30.10 | ||
| D-2(b) | Agricultural 5 kW & above | 200.00 | 24.10 | 24.10 | ||
| Under this tariff, there shall be minimum monthly charges of 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 | ||||||
| E-1(i) | Residential Supply | – | – | 42.03 | ||
| E-1(ii) | Commercial Supply | – | – | 38.14 | ||
| E-2 | Industrial Supply | – | – | 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, even if no energy is consumed. | ||||||
| F – SEASONAL INDUSTRIAL SUPPLY TARIFF | ||||||
| 125% of relevant industrial tariff | ||||||
| Note: | Tariff-F consumers will have the option to 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 remains in force for at least one year. | |||||
| G- PUBLIC LIGHTING | ||||||
| G | Street Lighting | – | 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 | ||||||
| H | Residential Colonies attached to industrial premises | – | – | 37.43 | ||
| I – RAILWAY TRACTION | ||||||
| I | Railway Traction | – | – | 37.43 | ||
| This Tariff shall remain applicable for the period of 1 year from the date of notification | ||||||
| Note : Financing cost surcharges @Rs. 0.43/ KWh would be applicable to all consumers (Except Life Line Consumer of the residential A-1 Category) for electricity sold. | ||||||
| K – SPECIAL CONTRACTS | ||||||
| 1 | Azad Jammu & Kashmir (AJK) | 440 | – | 34.65 | ||
| Peak | Off-Peak | |||||
| Time Of Use | 440 | 40.35 | 33.45 | |||
| 2 | Rawat Lab | 37.43 | ||||
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, IESCO 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 Iesco Unit Price Rate
Iesco, short for Islamabad Electric Supply Company, is a leading power distribution company in Pakistan. The company provides electricity to over 2.8 million customers in the Islamabad Capital Territory, Rawalpindi, Attock, and Jhelum districts.
One of the key aspects of Iesco’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 Iesco’s pricing structure, and understanding how it works can help customers make informed decisions about their energy usage and spending.
Historical Overview of Iesco Tariff
Iesco, or Islamabad Electric Supply Company, is responsible for providing electricity to the Islamabad 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, Iesco 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, Iesco 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, Iesco 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, Iesco 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, Iesco’s tariff rates have undergone several changes over the years, with the company introducing new systems and adjusting rates based on various factors.
Current Iesco Unit Price Rate
Iesco (Islamabad Electric Supply Company) is a power distribution company that supplies electricity to the Islamabad Capital Territory and Rawalpindi district. The unit price rate of Iesco is subject to change from time to time.
As of October 2023, the current Iesco 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 Iesco 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 Iesco 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 Iesco unit price rate and to take steps to manage their electricity consumption to reduce their bills.
Factors Influencing Iesco Tariff
The unit price rate or tariff of Iesco 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 Iesco 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 Iesco. The higher the production cost, the higher the tariff charged to the consumers. Similarly, the maintenance and repair expenses incurred by Iesco also affect the tariff rate. If the maintenance and repair expenses are high, Iesco will have to charge a higher tariff to cover those expenses.
Another internal factor that affects the Iesco 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 Iesco tariff include the cost of fuel, inflation, and government policies. The cost of fuel is a major determinant of the Iesco 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 Iesco 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 Iesco tariff. The government may introduce policies that increase or decrease the tariff rate. For example, the government may provide subsidies to Iesco, which can reduce the tariff rate for consumers.
In conclusion, the Iesco 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 Iesco Tariff
Domestic vs Commercial Rates
Iesco’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
Iesco’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 Iesco are from 7 pm to 11 pm, while the off-peak hours are from 11 pm to 7 am.
In summary, Iesco’s tariff structure is designed to encourage the efficient use of electricity. By charging higher rates during peak hours and for commercial consumers, Iesco aims to reduce the overall demand for electricity and promote energy conservation.
Regulations Governing Iesco Tariff
The Islamabad Electric Supply Company (IESCO) 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 IESCO tariff:
Multi-Year Tariff (MYT)
IESCO, 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 IESCO 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 IESCO 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, IESCO 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 IESCO tariff regime.
Future Predictions for Iesco 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 Iesco 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), Iesco 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 Iesco 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 IESCO unit price rate or tariff is an important factor that affects the electricity bills of consumers in the IESCO 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 IESCO 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.