- Earlier, govt had considered a one-time hike in prices
The government of Pakistan, which is gearing up to increase the base tariff of electricity by nearly Rs8 per unit, has decided that it will implement the hike in phases between July and September, reported Aaj News on Thursday.
National Electric Power Regulatory Authority (NEPRA) had approved an average increase of Rs 7.91 per unit in base tariffs of power Distribution Companies (Discos) for FY 2022-23, taking it to Rs24.82 per unit (47% higher) from the existing rate of Rs16.91 per unit, which was a prior action agreed with the International Monetary Fund (IMF) and World Bank.
The government was considering making the increase through a one-time hike. However, the leadership has decided this will be done in phases over the next three months.
Electricity prices have been rising for the past few months and the government decided to increase the base tariff from Rs16.91 per unit to Rs24.82 per unit for consumers of power distribution companies.
The increase, which is a part of conditions laid down by the IMF for the revival of its $6 billion bailout programme, will be implemented in phases.
Fuel adjustment charges and other costs would be in addition to the base tariff.
On June 3, NEPRA approved an average increase of Rs7.91 per unit in base tariffs of power distribution companies (Discos) for fiscal year 2022-23, taking it to Rs24.82 per unit from existing rate of Rs16.91 per unit, a move that had been agreed with the IMF and World Bank.
The regulator recommended the massive increase in tariffs at a time when citizens are facing load-shedding of 10 to 16 hours daily as the government has been unable to purchase expensive imported fuels like furnace oil, LNG and coal.
On Monday, NEPRA approved an increase of Rs7.9 per unit in the tariff of ex-Wapda distribution companies for the month of May under the monthly Fuel Charges Adjustment (FCA) mechanism.