ISLAMABAD: The federal government has announced the rebasing of power tariff, from existing Rs16.91 to Rs24.82 in the ongoing financial year will cause extra financial burden on the consumers up to Rs1043 billion.
The consumers will pay about Rs893 billion extra just because of increase in the basic power tariff while Rs150 billion will be collected in the shape of taxes.
The federal cabinet approved the enforcement of power tariff rebasing on Tuesday in three phases, starting from July 2022. With the August bills, the power consumers will see the painful impact of partial rebasing of tariff.
The federal government announced Rs3.50 per unit hike with effect from July 26 to generate revenue from the consumers to the tune of Rs893 billion during the current fiscal year and secure a bailout from the International Monetary Fund (IMF). Just imagine that to secure $1.17 billion tranche from the IMF, the government has thrown Rs1043 billion (almost $4.5 billion) power tariff bomb on consumers for the fiscal year 2022-23.
Addressing a news conference Minister for Power Khurram Dastgir Khan said ‘tariff rebasing’ was approved by the federal cabinet under which the second phase of Rs3.50 per unit will become effective next month and with a one-month gap in September, the remaining 91 paisa per unit increase would come into force in October. Minister of State for Petroleum Musadik Malik also accompanied Dastgir Khan.
He said the tariff rebasing involving Rs7.91 per unit should have come into force in February as the previous rebasing was implemented in February 2021 but the previous government delayed it for political reasons. With this increase of Rs7.91 per unit, the base national average electricity tariff would go up from Rs16.91 per unit to Rs24.82 with financial impact of Rs893bn in FY2022-23, besides over Rs150bn in additional sales tax, Dawn.com reported today.
Mr Dastgir said the power tariff would start decreasing in November-December once the rebasing process was complete and the results of the steps being taken by the current government start yielding results.
