Govt Approves Massive Hike in Power Tariff

The Federal Cabinet on Saturday approved a massive hike in the power tariff up to Rs. 7.50 per unit, which puts a huge burden on the masses that are already facing record inflation and rise in price of basic commodities.

According to the details, the power tariff has been hiked from Rs. 3 per unit to Rs. 7.50 per unit after the approval was given by the cabinet via circulation summary. Furthermore, the hike is set to come into effect from July 1 after a formal notification by National Electric Power Regulatory Authority (NEPRA) following a public hearing.

It is pertinent to mention that NEPRA had already sanctioned an increase in the electricity tariff for the current financial year. According to NEPRA, the revised national average tariff for the currency fiscal year 2023-24 has been determined at Rs. 29.78 per unit, which is already Rs. 4.96 per unit higher than the previously determined average national tariff of Rs. 24.82 per unit.

Meanwhile, Federal Secretary Energy Rashid Mahmood Langrial has stated that 55% of households will not be affected by the increase as proposed price adjustments vary according to consumption levels outlined below.

The regulator has cited PKR devaluation coupled with high inflation and interest rates, the addition of new capacities and overall low sales growth as the main reasons behind the hike in the power tariff.

Meanwhile, it was actually hiked to meet one of the conditions set by the International Monetary Fund (IMF) of introducing structural reforms in the energy sector.

It is pertinent to mention that actual electricity bills will be much higher compared to previous months once all surcharges, taxes, duties, levies, and monthly and quarterly adjustments are added.

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