Electricity price up by Rs1.25 under Fuel Charges Adjustment
Business
Power distribution companies will charge the amount in July, August and September bills
ISLAMABAD (Dunya News) – The National Electric Power Regulatory Authority (NEPRA) on Tuesday approved a hike of Rs1.25 per unit in the electricity consumers under Fuel Charges Adjustment (FCA) as it announced the decision reserved since hearing the matter back in May.
The power distribution companies (Discos) had requested the regulatory body to increase the price which would be charged in the bills for the months of July, August and September.
Meanwhile, the latest increase will be applicable to all consumers – barring those falling in the lifeline category – across the country except the region covered by the K-Electric.
The latest move can be described as just a tip of the iceberg amid an alarming inflation as Pakistan has clinched the $3 billion deal with the International Monetary Fund's (IMF) for sure but with some conditions that will certainly further burden the people who are already rattled by the record-breaking inflation.
Read more: What Pakistan needs to do under the IMF programme
Hence, the government is now expected to raise the electricity and gas tariffs before the IMF Executive Board’s meeting scheduled by July 12. Why? To meet the targets set by the world’s top lender and ensure that there is no hiccup as the IMF Executive Board will give final approval to the Stand-by Arrangement (SBA) between the two sides.
And this increase is nothing small – Rs3.50 hike in the per unit base price of electricity and 45 to 50 per cent hike in the gas tariff.
It will certainly be a painful measure for the masses, triggering a chain reaction when it comes to the inflation that is already touching the unbearable level for an overwhelming majority.
The latest SBA replaces the previous agreement known as Extended Fund Facility (EFF) which remained incomplete. It is nothing new as Pakistan has only once completed any agreement with the IMF which happened during the previous tenure of PML-N when Nawaz Sharif was the country’s prime minister.
Since independence, Pakistan has reached the IMF 23 times – second only to Argentina in the world, which entered into a deal with the top financial institution on 24 occasion.
