Cabinet Approves Rs. 5.65 Per Unit Increase in Electricity Prices

The federal Cabinet has approved the promulgation of an ordinance to increase the power tariff by at least Rs. 5.65 per unit.

The Cabinet has approved an emergency summary to increase the power tariff by a minimum of Rs. 5.65 per unit from now until October to collect Rs. 884 billion from consumers. The Rs. 5.65 per unit increase will cause a surge of 36 percent in the electricity bill excluding the impact of taxes.

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This step has been reportedly been taken to prevent the International Monetary Fund (IMF) program from crumbling. Meanwhile, the electricity rates are also expected to increase by 65 paisas per unit.

The Central Power Purchasing Agency (CPPA) has filed an application with the National Electric Power Regulatory Authority (NEPRA) to request an increase in electricity prices under the fuel price adjustment for February 2021.

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The petition claimed that the CPPA had charged consumers a reference fuel tariff of Rs. 4.1414 per unit in February, but the real fuel cost had turned out to be higher, which is why it should be permitted to charge the consumers an additional cost of Rs. 0.6573 per unit.