NEPRA holds its verdict on increasing baseline tariff for electricity consumers to the tune of Rs 1.68 per unit. If approved, the average per unit cost of electricity will be increased to Rs 15.36 per unit.
The Federal government filed a petition to NEPRA to increase baseline tariff under an agreement with International Monetary Fund (IMF). The hearing to consider the government’s petition to raise the consumers-end tariff to Rs 1.39 per for ex-WAPDA distribution companies (XWDISCOs) and K-Electric, was held in Islamabad. (It is to note the average increase sought is Rs 1.39, but tariff increase for domestic consumers is Rs 1.68)
Chairman NEPRA, Tauseef Farooqi, presided over the public hearing that was attended by NEPRA members including Rafique Ahmad Sheikh, Rehmatullah Baloch, and Maqsood Anwar Khan.
According to Power Division, the average electricity tariff is Rs 13.97 per unit. After the increase, the average per unit cost of electricity will be Rs 15.36 per unit.
NEPRA Chairman Tauseef Farooqi reminded that the government had earlier approved an increase of Rs 3.34 per unit. At that time, the government increased the per unit price by Rs 1.95 and gave a subsidy of Rs 1.85 per unit. He said why the government wants to reduce the subsidy and add Rs 1.39 per unit in consumers’ base price.
During the hearing, the Chairman also asked the officials of the Energy Ministry how the tariff increase would affect each category of power consumers.
In response, Energy Ministry officials briefed that all four categories of protected consumers will remain unaffected from the tariff increase while it will be applicable to each of the eight categories of the unprotected consumers.
The Additional Secretary Power Division said that the limit of lifeline customers has been increased from 50 to 100 units.
Here is how the tariff hike would be applicable to each category of unprotected consumers.
| Category (Units) | Uniform Determined Per Unit Tariff (Rs.) | Applicable Per Unit Tariff (Rs.) | Proposed Increase Per Unit Tariff (Rs.) | Per Unit Tariff After Increase (Rs.) |
| 1-100 | 14.59 | 7.74 | 1.68 | 9.42 |
| 101-200 | 16.41 | 10.06 | 1.68 | 11.74 |
| 201-300 | 17.53 | 12.15 | 1.68 | 13.83 |
| 301-400 | 19.07 | 19.55 | 1.68 | 21.23 |
| 401-500 | 19.07 | 19.55 | 1.68 | 21.23 |
| 501-600 | 19.07 | 19.55 | 1.68 | 21.23 |
| 601-700 | 19.07 | 19.55 | 1.68 | 21.23 |
| 701 and above | 20.61 | 22.65 | 1.68 | 24.33 |
Chairman NEPRA said that it would be a burden on consumers using more than 200 units and hence a burden on the general public. He suggested the Energy Ministry officials exempt the first three categories of consumers from the tariff increase proposed by the Federal Government.
The Energy Ministry officials argued that it is impossible, otherwise, the burden of the subsidy to the first three categories of consumers would have to be borne by the consumers of the rest of the categories.
The chairman countered them and said that the first three categories (1-300 units) of the consumers are generally underprivileged citizens and it is his primary responsibility to protect such consumers against tariff hikes.
Ministry of Energy officials said that despite the increase, they are giving a subsidy of Rs 168 billion.
In case of an increase, the raise will be applicable to consumers across the country including K-Electric consumers.
The authority withheld the decision and will announce it later in the week.
