The federal cabinet has sanctioned a substantial increase in the base power tariff by up to Rs7.5 per unit. This decision comes as a blow to the already inflation-burdened populace.
The National Electric Power Regulatory Authority (NEPRA) had previously escalated the national average tariff by nearly Rs5 just last week. Following this, the power ministry confirmed that the federal cabinet has endorsed NEPRA’s proposal for further price hikes in the uniform tariff.
This price surge is set to come into effect from July 1 and will impact consumers of K-Electric among other power distribution companies (Discos). However, there are certain exemptions to this hike. Lifeline consumers using up to 100kW per month and the protected segment consuming up to 200kW will not be affected by this increase. As such, lifeline consumers using up to 50kW will continue paying Rs3.95 per unit while those using between 51-100kW will continue paying Rs7.74 per unit.
For consumers utilizing between 601-700kW reaching Rs37.8 per unit. Similarly, an equal increase for consumers using more than 700kW has resulted in a new tariff of Rs42.72 per unit. After including an 18 percent sales tax, the maximum power tariff for those using more than 700kW will reach Rs50.41/kWh.
Following the approval of NEPRA’s proposal, the cabinet has moved to “reconsider and issue” the new uniform tariffs for the power utilities and K-Electric. To finalize this decision, NEPRA has announced a public hearing scheduled for July 24.
However, for unprotected residential consumers using up to 100kW per month, the base tariff has been increased by Rs3 per unit, reaching Rs16.48. Those consuming between 101-200kW will now pay Rs22.95 per unit after an increase of Rs4. The tariff for consumers using between 201-300kW has been raised by Rs5 per unit, resulting in a new rate of Rs27.14 per unit. An increase of Rs6.50 per unit for consumers in the 301-400kW category will result in them paying Rs32.30 per unit. For consumers using between 401-500kW, the price has been increased by Rs7.5 per unit, taking the new rate to Rs35.24, while an equivalent hike for those consuming between 501-600kW will take the rate to Rs36.66 per unit.
This significant hike in power tariffs is expected to have far-reaching implications for consumers across the country.
