The price of electricity has gone up again. Why do people have to pay extra for last month's electricity?

 Inflation has once again bombarded the people with rising electricity prices. According to Express News, NEPRA has increased the unit price of electricity by Rs 4.30 paise.

The price of electricity has gone up again. Why do people have to pay extra for last month's electricity?

According to the notification issued by NEPRA, electricity prices have been increased in the context of November's fuel adjustment. Additional charges will be collected in January bills. However, these prices will not apply to K Electric and Life customers.

What is fuel adjustment?

You may have noticed that most of the increase in electricity prices is done in the context of fuel adjustment due to which suddenly a burden of billions is imposed on the people. But what is this fuel adjustment? To understand this question, it is important to know how electricity is generated.

Various fuels like LNG, coal, diesel and furnace oil are used to generate electricity in Pakistan. Most of these fuels have to be imported. If the price of fuel suddenly goes up, the government has to buy at exorbitant prices and later this amount is divided into units and taxed which is paid by the people.