In an effort to meet the requirements of the IMF, the federal cabinet has approved yet another significant increase in electricity costs.
According to Samaa News, the decision to boost electricity costs came as a shock to the population, which is already dealing with the effects of inflation.
The cost of one unit of electricity has increased under the new tariff structure from Rs. 3 to Rs. 7.50. Through circulation, the federal cabinet approved this significant price adjustment.
An rise in electricity rates for the current fiscal year has previously been approved by the National Electric Power Regulatory Authority (NEPRA). NEPRA received a request from the federal government to increase the cost of basic power; before making a decision, the authority is likely to hold a hearing on this request.
The suggested price changes change based on consumption levels. The price increase per unit is fixed at Rs. 3 for those who use 100 units of power. After the plan is approved, the electricity charge will be Rs. 4 per unit for individuals consuming 101 to 200 units.
Similar to this, an increase in price of Rs. 5 per unit for electricity users using 201 to 300 units is being recommended. The price is expected to rise by Rs. 6.50 per unit for those using 301 to 400 units. A considerable rise of Rs. 7 per unit has also been proposed by the government for customers who use 400 to 700 units of power every month.
The federal government will publish a formal notification to adopt the suggested rate increase after Nepra completes its evaluation. The price rise is anticipated to take effect on July 1.