Nepra seals base tariff hike, says overwhelming majority will be subsidised
Business
Govt had earlier approved Rs3.50 to Rs7.96 increase
ISLAMABAD (Web Desk) – Get ready to pay more for the electricity you consume as the National Electric Power Regulatory Authority (Nepra) approved the increase in basic tariff with effect from July 1.
However, Nepra Chairman Tauseef H Farooqi noted that an overwhelming majority of consumers would be protected against the hike through the subsidies allocated by the government in the 2023-24 budget.
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 International Monetary Fund (IMF).
Read more: Power tariff jacked up in line with IMF deal, says PM Shehbaz
He told the gathering that 63 per cent domestic consumers using up to 200 units a month would be exempted while a partial subsidy was also being given to those consuming up to 300 units, which comprised around 31pc of the total domestic consumers.
On Monday, the approval by Nepra came after a public hearing where the business representatives and others vehemently opposed the move albeit to no effect.
Read more: Pakistan: What lies ahead in post-IMF deal period?
Last week, the federal cabinet 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 – a move that will place an additional burden of Rs3,495 on consumers.
Meanwhile, the inflation-hit households will now have to adjust their monthly budget for accommodate their expenses, as the Oil and Gas Regulatory Authority (Ogra) on Monday hiked the tariff for the Sui Northern Gas by 50 per cent and the Sui Southern Gas by 42pc on average.
It means a Sui Northern gas consumer is going to pay an additional amount of Rs415.55 per MMBtu (Metric Million British Thermal Unit) while the increase in the case of Sui Southern stands at Rs417 MMBtu.
The move follows the federal cabinet last week approved a massive hike in electricity base tariff - Rs3.50 to Rs7.96 per unit - through circulation as Pakistan is moving ahead to meet the harsh IMF conditions under the $3 billion deal reached a stand-by arrangement.
