The federal cabinet has given its approval for a substantial increase in electricity prices. This decision, which comes at a time when citizens are already struggling with the effects of inflation, has sent shockwaves through the populace.
The new tariff structure sees the price per unit of electricity soaring from Rs. 3 to Rs. 7.50 per unit. This significant adjustment was approved by the federal cabinet via circulation. The news of this hike comes on the heels of reports that weekly inflation remains close to 30% over the previous year.
Prior to this, the National Electric Power Regulatory Authority (NEPRA) had already authorized an increase in electricity tariffs for the current fiscal year. The federal government had submitted a request to NEPRA to raise the basic electricity price. The regulatory authority is expected to hold a hearing on this request before making a final decision.
The proposed price adjustments are not uniform but vary according to consumption levels. For consumers using up to 100 units of electricity, the price increase per unit is set at Rs. 3. Those consuming between 101 to 200 units will see a rate increase of Rs. 4 per unit upon acceptance of the proposal.
Furthermore, consumers utilizing between 201 to 300 units will face a proposed price hike of Rs. 5 per unit. For those using between 301 to 400 units, the cost is set to increase by Rs. 6.50 per unit. The government has proposed a significant increase of Rs. 7 per unit for consumers utilizing between 400 to 700 units of electricity.
Following NEPRA’s evaluation, the federal government will issue a formal notification to implement the proposed tariff hike. The price increase is scheduled to take effect from July 1. This move is likely to further burden the common man who is already grappling with the impacts of inflation.
