Tariff Hike
ISLAMABAD: The federal cabinet, already facing significant backlash for a budget heavily laden with taxes, has taken a decisive step by approving an increase in the base electricity tariff across several consumer categories, including services, bulk users, and agriculture.
In a move intended to address fiscal pressures and streamline the energy sector’s finances, the cabinet sanctioned hikes in various tariff rates: commercial consumers will see a substantial increase of Rs8.04 per unit, bringing the new base tariff to a maximum of Rs77.15 per unit starting from July.
Similarly, agricultural consumers will experience a raise of Rs6.62 per unit, reaching Rs46.83 per unit, while general services will witness an increase of Rs6.96 per unit, setting the tariff at Rs61.03 per unit. Bulk consumers, on the other hand, will face a hike of Rs5.96 per unit, resulting in a new tariff rate of Rs59.96 per unit.
Notably, industrial consumers have been exempted from this tariff adjustment, maintaining their existing base tariff rates.
The decision, communicated through a circulation summary, reflects a concerted effort by the government to stabilize the energy sector’s financial health amid ongoing economic challenges.
The National Electric Power Regulatory Authority (Nepra) has been duly informed about the cabinet’s resolution, and upon receiving Nepra’s approval, the federal government plans to issue an official notification to implement these tariff revisions.
In a related development, the federal cabinet has also greenlit an increase in the base electricity tariff for domestic consumers by Rs7.12 per unit.
However, in a bid to cushion the impact on low-consumption households, all domestic consumers using up to 200 units per month will be exempted from this increase for the next three months, spanning from July to September 2024.
These adjustments in the base electricity tariffs are slated for implementation starting July 1, aiming to shore up revenues in the energy sector while balancing the need for affordability and sustainable fiscal policies amidst economic challenges.
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