NEPRA notifies massive tariff hike
ISLAMABAD: The NEPRA notified a record hike in tariff, up to Rs7.50 per unit to meet a condition of the IMF and appease the federal government.
NEPRA said that the new tariffs would come into effect from July 1, 2023.
Nepra Tower Islamabad held a public hearing on the matter on Monday (July 24), during which the federal government’s application for the tariff hike was approved. The power ministry, in the hearing, submitted that the increase requested through the “Instant Motion” aligns with NEPRA’s overall revenue requirement.
Despite the proposed increase, the government would still be providing a subsidy of Rs158 billion, according to the notification.
Last Saturday, the federal cabinet authorized the significant increase in the base tariff of electricity.
The tariff is set to increase up to Rs7.50 per unit, in contrast to the national average tariff determination of Rs4.96.
Prime Minister Shehbaz Sharif said that the recent increase in the power tariff would not apply to lifeline consumers and protected category consumers.
Govt throws Bomb of Bijly on consumers
Meanwhile, just a few days before the dissolution of assemblies, the federal cabinet exploded a big bomb of ‘Bijly’. The cabinet approved a massive increase in the base tariff of electricity _ up to Rs7.50 per unit.
Notably, the actual tariff would be much higher when considering surcharges, taxes, duties, and levies, in addition to monthly and quarterly adjustments
Earlier, the government had planned only a Rs 4.90 per unit increase in the national average tariff.
However, on Saturday, the coalition government decided to ‘do more’ and explode the bomb of ‘Bijly’ before completing its term, approving a record hike in the tariff in one go.
According to the Federal Secretary of Energy, Rashid Mahmood Langrial, the new tariff will be applicable from the back date (July 1).
He said that NEPRA will issue a formal notification after conducting a public hearing.
The government sought the cabinet’s approval to adjust different rates of increases for various consumer categories through cross-subsidy.
Meanwhile, NEPRA also issued a statement saying the revised national average tariff for the 2023-24 fiscal year has been increased to Rs29.78 per unit kWh.
