When paying for electricity, the rates and tariffs can be quite confusing. From peak demand charges to time-of-use pricing (TOU), understanding electricity billing can be an uphill battle. However, taking the time to interpret the various factors that affect the final amount due can help you save money and better manage your energy usage. Let’s delve deeper into the intricacies of MEPCO online electricity bill rates and tariffs.

MEPCO’s electricity tariff is the price consumers pay for their energy consumption. This tariff includes various charges such as demand charges, energy supply fees, and other current charges in addition to the current electricity rate. The MEPCO tariff is the total cost of your monthly electricity bill.

The bill rates charged by MEPCO are liable to fluctuate depending on the directives promulgated by the Government of Pakistan through the National Electric Power Regulatory Authority (NEPRA). The tariff rates can be affected by various factors, such as changes in fuel prices, power generation costs, and inflation rates.

As per the NEPRA Tariff Standard and Procedure Rules, 1998, the regulatory authority responsible for overseeing the power sector in Pakistan establishes tariffs for companies involved in generating, transmitting, and distributing electricity within the country.

The electricity tariff regarding power generation depends on Power Purchase Agreements (PPA) between power producers, such as Independent Power Producers (IPPs), public Generation Companies and the Central Power Purchasing Agency (CPPA), which authorize the calculation of revenue demands of each producer. It is based on following predetermined formula.

Practically, the tariffs that consumers pay for electricity depend on their energy consumption and their load conditions. MEPCO has fixed the electricity tariff by considering various factors for different types of consumers, such as domestic, industrial, commercial, etc. Industrial consumers generally pay higher taxes than domestic consumers due to their higher demand for electricity over extended periods. Several factors determine the electricity tariffs

Tariffs are meticulously computed, depending on the user’s peak demand and power consumption during different times of the day or seasons, known as time-of-use pricing. This pricing strategy encourages consumers to shift their energy consumption to off-peak hours, which helps to reduce the overall cost of energy production and transmission.

Unit Rate is a pricing structure imposed on the consumption of electric energy by various consumers, including domestic, commercial, and industrial. Under this system, consumers are charged based on the number of units (kilowatt-hours) of electricity they consume. This rate is a fixed price per unit of electricity utilized which means that the more energy a consumer uses, the higher their bills will be.

Electricity Rates	Domestic KWh	Business KWh
PKR	13.080	41.900

The expenditure associated with electricity production is subjected to various variables, including Maximum Demand, Load Factor, Connected Load, Plant Capacity Fact, Demand Factor, Diversity Factor and Use Factor. The intricacies of these factors hinge on the kind of load and the prevailing load conditions. As a result, tariffs vary across different load types and, consequently, across distinct consumer groups.

According to the NEPRA statement issued in 2022, domestic users are charged a minimum even if they do not consume any energy during a particular month. MEPCO applies the unit rates specified below for these charges in these scenarios.

These charges ensure that MEPCO can maintain the necessary infrastructure and provide an uninterrupted electricity supply to all consumers, regardless of their energy consumption.

Class	Uniform Tariff	Variable Tariff
50 Units or less	4.00	3.95
1 – 100 Units	14.58	7.78
101 – 200 Units	16.42	10.04
201 – 300 Units	17.54	12.17
301 – 700 Units	19.08	19.59
Above 700 Units	20.62	22.64
Time of use	Peak – 20.28 Off-Peak – 13.11	Peak – 22.66 Off-Peak – 16.34

According to NEPRA, customers of MEPCO are mandated to pay subsequent monthly fees following commercial tariff A-2, irrespective of whether any energy was consumed during that month.

Class	FIXEDCHARGES	UNIFORM CHARGES	VARIABLE CHARGES
Sanctioned load: Below 5 kW		19.57	19.96
sanctioned load: Exceeding 5 kW	440.00	19.23	21.64
TOU:	440.00	At Peak hours:21.02 At off peak hours: 13.49	At Peak hours:23.55 At off peak hours: 17.58

MEPCO applies a higher tariff rate for industrial consumers compared to domestic consumers. Industrial consumers typically have a higher electricity demand and require a different supply infrastructure to meet their needs. The latest applied MEPCO tariff reflects these differences in rates.

Class	Fixed Charges	Uniform Charges	Variable Charges
B1	–	18.32	17.24
B2-a	440.00	17.86	16.75
B1-b	–	At Peak hours – 21.18 At off-Peak hours – 13.42	At Peak hours – 20.78 At off-Peak hours – 15.24
B2-b	440.00	At Peak hours – 20.96 At off-Peak hours – 13.51	At Peak hours – 20.74 At off-Peak hours – 15.03
B3	420.00	At Peak hours – 21.12 At off-Peak hours – 12.64	At Peak hours – 20.74 At off-Peak hours – 14.96
B4	400.00	At Peak hours – 20.94 At off-Peak hours – 12.98	At Peak hours – 20.74 At off-Peak hours – 14.86

Single point supply tariff is a pricing structure in which electricity is supplied to a single point of delivery, and it requires an electrical supply for the motor voltage and a 120V supply for the contacts. Its tariff rates are computed in the following manner:

Class	Uniform Charges	Variable Charges
C-1 (400/230 volts power supply)
C-1-a: For sanctioned load less than 5KW	24.37	20.64
C-1-b: Where  sanctioned load ranges from 5.0kW to 500kW	21.32	20.12
C-2-a:  Power Supply:1133 kV Sanctioned load: 5000kW	17.04	19.94
C-3-a: Power Supply up to  or exceeding 66 kV Sanctioned load :5000kW	15-12	19.84
C-1-c:Energy supply of 400/230 volts , Sanctioned load:5KW to 500 kW	At Peak hours: 22.45At off-peak hours: 15.00	At Peak hours: 23.56 At off-peak hours: 16.96
C-2-b: Power supply of 1133 kV with Sanctioned load of 5000 kW	At Peak hours: 20.41 At off-peak hours: 12.88	At Peak hours: 23.55 At off-peak hours: 16.73
C-3-b: Power supply=66 kV or above supply Sanctioned load = Exceeding 5000 kW	At Peak hours: 19.51 At off-peak hours: 11.67	At Peak hours: 23.56 At off-peak hours: 16.64

Agriculture Tariff for Energy Consumers

Each agricultural consumer under MEPCO is subjected to a minimum monthly tariff of Rs. 2000, as mandated by NEPRA. This minimum tariff is applied even if the consumer consumes no energy during that month.

Class	Uniform Charges	Variable Charges
D-1 (a): For SCARP, power supply below 5 kW	22.93	17.64
D-2 (a): Field tube wells	17.64	7.31
D-1 (b): For SCARP, power supply of 5 KW or above	At Peak hours: 23.78 At off-peak hours: 14.24	At Peak hours: 20.56 At off-peak hours: 13.31
D-2 (b): Sanctioned load up to or exceeding 5 kW	At Peak hours: 21.45  At off-peak hours: 13.05	At Peak hours :7.32 At off-peak hours: 7.31

Temporary Supply Tariff

Class	Uniform Charges	Variable Charges
E-1-a: Domestic Purposes	21.74	22.78
E-1-b: Commercial utilization	19.24	20.35
E-2-b: Industrial utilization	18.37	18.32

Seasonal Industrial Supply Tariff

National Electric Power Regulatory Authority allows seasonal consumers to switch to the regular tariff. Consumers can take advantage of this option at the beginning of each seasonal period and enjoy the benefits of this perk for up to one year. This advantage gives consumers greater flexibility to choose the tariff that best suits their needs while ensuring they are charged fairly and transparently for their energy consumption.

Public Lighting

MEPCO requires consumers in Multan to pay a tariff of Rs. 500 per kW according to the capacity of installed lamps monthly. This tariff applies to public lighting and is classified as the G tariff.

Class	Uniform Charges	Variable Charges
Public lighting	19.01	20.64

Residential Areas in Industrial locations

Class	Uniform Charges	Variable Charges
Public lighting	19.01	20.64

An electricity withholding tax statement is a document that shows the amount of tax withheld from electricity payments made to an electricity supplier. Consumers are being charged varying tax rates based on the applicable tariff and the amount of their electricity bill.

 As long as domestic electricity consumers are included in the Active Taxpayers List (ATL), they are exempted from withholding tax. The collection of withholding tax on electricity consumption is the responsibility of the FBR as per Section 235 of the Income Tax Ordinance, 2001. For bills with a gross amount ranging from Rs. 500 to Rs. 20,000, the applicable withholding tax rate is 10%.

Conclusion

In conclusion, electricity bill tariffs and bill rates are important factors determining our electricity bills’ cost. Understanding these tariffs and rates can help customers make informed decisions about their electricity usage and choose the most cost-effective options. It is also important to be aware of any taxes and charges added to our bills and to take steps to reduce our overall electricity consumption. Doing so can help reduce our energy costs and minimize its detrimental impacts on the environment.