Nepra fixes new tariffs after base price increase for power consumers
Last updated on: 26 July,2023 12:12 pm
Latest rates will be applicable with effect from July 1
ISLAMABAD (Dunya News/Web Desk) – The NEPRA (National Electric Power Regulatory Authority) issued its reserved verdict on the federal government's request for an increase in electricity prices, in which it endorsed the move and fixed new tariffs for different categories of consumers.
According to Nepra's decision, the new price for domestic consumers consuming up to 100 units of electricity per month will surge by Rs3 and by Rs4 falling in the 101 to 200 slab. Hence, the new tariffs after the latest hike for the two categories now stand at Rs16.48 and Rs22.95 per unit respectively.
However, these two sets of consumers would remain fully immune from the tariff hike through the subsidies allocated by the federal government in the budget
Details of the remaining slabs for domestic consumers is given below:
201 to 300 units: increase Rs5, new price Rs.27.14 per unit.
301 to 400 units: increase Rs6.50, new price Rs.32.03 per unit.
401 to 500 units: new price Rs35.24 per unit.
501 to 600 units: new price Rs36.66 per unit.
601 to 700 units: new price Rs37.80 per unit
Over 700 units: new price Rs.42.72 per unit. However, the actual tariff would be more than Rs50 per unit after imposition of additional GST.
The increase in electricity tariff will be applicable from July 1 after the government issues a notification.
Last week, the federal cabinet had approved a massive hike - Rs3.50 to Rs7.96 per unit - in electricity base tariff through circulation as Pakistan is moving ahead to meet the harsh IMF conditions under the $3 billion deal reached a stand-by arrangement.
As a result, the matter sent to the Nepra to formally incorporate the new tariff for which the regulator held a public hearing to decide the matter before a final notification.
The move came as Prime Minister Shehbaz Sharif had reassured IMF Managing Director Kristalina Georgieva that he would not tolerate an iota of violation of the agreement reached with the world’s top financial institution.
And on Monday, the Nepra approved the increase in basic tariff with effect from July 1 as its chairman, Tauseef H Farooqi, noted during the public hearing that an overwhelming majority of consumers would be protected against the hike through the subsidies allocated by the government in the 2023-24 budget.
Read more: Nepra seals base tariff hike, says overwhelming majority will be subsidised
In fact, he echoed what Prime Minister Shehbaz Sharif had stated earlier about the subsidising the power consumers, while reminding the audience that the increase in tariff was only because of the IMF conditions.
People should be ready for more of this in the coming days as Pakistan has to fulfil the conditions set by the IMF makes it near impossible for any government to any deviation from the deal inked with the Washington-based international financial institution.
Read more: Pakistan: What lies ahead in post-IMF deal period?
The reason behind this is the IMF’s insistence on increasing energy prices, interest rates and tax collection as its managing director Kristalina Georgieva stressed that Pakistan would have to accelerate structural reforms.