MEPCO Tariff Guide

As of September 2024, the electricity tariffs under MEPCO (Multan Electric Power Company) have seen significant revisions. These adjustments, made in line with broader government policy and NEPRA’s (National Electric Power Regulatory Authority) regulations, affect residential, commercial, and industrial users alike. The changes in tariffs reflect the ongoing economic pressures, including inflation, fuel cost variations, and high energy demands.

Check and Download Your MEPCO Bills Here!

What Is an Electricity Tariff?

An electricity tariff is simply the price that consumers pay for the electricity they use. It’s a structured way for power companies like MEPCO to charge customers based on their usage and the type of connection they have. Think of it like a price list that changes based on how much electricity you consume and what kind of consumer you are (e.g., residential, commercial, industrial).

Types of MEPCO Tariffs

MEPCO has various tariff categories to suit different types of consumers. Let’s explore these tariff categories in details with rates.

Domestic Tariff

MEPCO employs a slab-based system for residential consumers. This system allows for lower rates for basic consumption, gradually increasing as consumption rises. The protected and non-protected categories are crucial to understand, especially for users who consume fewer or more than 200 units per month.

Current Residential Rates (September 2024):

• Up to 50 units: PKR 3.95 per unit (protected)
• 51-100 units: PKR 7.74 per unit (protected)
• 101-200 units: PKR 10.06 per unit (protected)
• 201-300 units: PKR 27-30 per unit (non-protected)
• 301-400 units: PKR 38 per unit (non-protected)
• 401-500 units and above: PKR 42 per unit

These rates have been adjusted upward due to higher fuel costs and the devaluation of the Pakistani Rupee, with an average increase of PKR 5.72 per unit across the board​.

Protected vs. Non-Protected Categories

• Protected consumers: Those who consistently use less than 200 units over a six-month period. They benefit from significantly lower rates, but once they exceed the 200-unit threshold, they are moved into the non-protected category, which entails much higher rates.
• Non-Protected consumers: Users who exceed 200 units in a billing cycle, subject to higher unit costs and additional surcharges.

Commercial Tariff

MEPCO’s commercial consumers, which include shops, offices, and other business entities, are charged higher rates than residential users due to their greater power needs. The commercial tariff is divided by the size of the business’s power connection:

• Up to 5 kW: PKR 19.56 per unit
• Above 5 kW: PKR 19.22 per unit
• Time of Use (TOU) Peak Hours: PKR 23.55 per unit
• TOU Off-Peak Hours: PKR 17.58 per unit

Minimum monthly charges for commercial users are:

• Single-phase connection: PKR 175 per month
• Three-phase connection: PKR 350 per month

This tariff structure encourages businesses to operate during off-peak hours to reduce costs. Many companies can further optimize energy use by installing smart meters that track peak and off-peak consumption.

Industrial Tariff

For industrial consumers, MEPCO has a more complex tariff system based on the type and scale of the business:

• B1 (Small industries):
  • Peak hours: PKR 21.19 per unit
  • Off-peak hours: PKR 13.41 per unit
• B2 (Large industries):
  • Peak hours: PKR 20.95 per unit
  • Off-peak hours: PKR 13.50 per unit

Additionally, the minimum monthly charges for industrial consumers vary widely depending on the size of their operations, ranging from PKR 350 to PKR 500,000 per month​. These fixed charges ensure that industries pay a base fee even during periods of lower consumption, reflecting the higher demand placed on the grid.

Agricultural Tariff

The agricultural sector benefits from subsidized rates to support rural economies. The current tariff rates are:

• Tube wells (less than 5 kW): PKR 17.63 per unit
• Tube wells (above 5 kW):
  • Peak hours: PKR 21.44 per unit
  • Off-peak hours: PKR 13.04 per unit

Farmers face minimum monthly charges of PKR 2,000, regardless of whether they consume electricity or not. These tariffs are part of the government’s broader strategy to ensure food security by reducing operational costs for farmers​.

Key Components of Your MEPCO Bill

Understanding how your electricity bill is calculated can help you manage costs effectively. Here are the key components that affect your total bill:

• Energy Charge: The base rate per unit, depending on your consumption slab.
• Fuel Price Adjustment (FPA): This fluctuates with global oil and gas prices, directly affecting your bill.
• Tariff Rationalization Surcharge (TR): A surcharge representing the difference between NEPRA’s tariff and the Government of Pakistan’s adjustments. This can result in either subsidies or additional charges, depending on economic conditions​.
• Quarterly Adjustments: Periodically, MEPCO adjusts bills to reflect changes in fuel prices and other economic variables.
• Fixed Charges: These apply even if you don’t consume any electricity during a billing cycle.

Managing Your Electricity Costs: Practical Tips

With rising electricity costs, consumers can take several steps to minimize their bills:

• Use energy during off-peak hours: By shifting heavy usage to off-peak times, when rates are lower, you can significantly reduce your costs.
• Monitor your consumption: Stay within the protected category (below 200 units per month) to take advantage of the lower tariffs.
• Switch to energy-efficient appliances: Appliances with higher energy efficiency ratings consume less electricity, helping you stay within lower consumption slabs.
• Invest in solar energy and net metering: MEPCO offers a net metering program, allowing consumers with solar panels to feed excess electricity back into the grid, earning credits that reduce monthly bills.

FAQ’s

1. What are the current residential electricity rates for MEPCO in 2024?

Residential consumers are charged based on their electricity usage in slabs. For consumption up to 50 units, the rate is PKR 3.95 per unit, increasing progressively for higher usage up to PKR 42 per unit for usage beyond 500 units.

2. How does the slab system work for MEPCO residential consumers?

MEPCO uses a slab-based system, where consumers pay a lower rate for the first few units they consume, and the rate increases as their usage exceeds predefined thresholds (e.g., 50, 100, 200 units).

3. What is the difference between protected and non-protected categories?

Protected consumers are those using fewer than 200 units monthly over six months, allowing them to benefit from lower tariffs. If usage exceeds 200 units, they fall under the non-protected category, facing higher rates.

4. What are the peak and off-peak hours in MEPCO’s tariff structure?

MEPCO charges higher rates during peak hours to manage grid demand. Peak hours vary seasonally, such as 7:00 PM to 11:00 PM during the summer. Off-peak hours, when rates are lower, are outside these times.

5. How can I lower my electricity bill with MEPCO?

You can reduce your bill by conserving electricity, especially during peak hours, staying under 200 units of monthly consumption to remain in the protected category, and using energy-efficient appliances.

6. What are the rates for commercial and industrial users under MEPCO’s 2024 tariff?

Commercial users with small connections (up to 5 kW) are charged PKR 19.56 per unit, while larger businesses pay PKR 19.22 per unit. Industrial rates vary, with small industries charged PKR 21.19 per unit during peak hours and PKR 13.41 during off-peak times.