ISLAMABAD – The federal government requested an increase in tariff of Rs 1.95 per unit for all electricity consumers, including lifeline consumers using less than 50 units per month.
The National Electric Energy Regulatory Authority (Nepra) held an open hearing on the federal government’s decision to increase the tariff by Rs 1.95 per unit for electricity consumers.
As NEPRA reserves its decision on the federal government petition, consumers are likely to face an increase in electricity tariff of Rs 1.95 per unit. The increase will load power consumers by Rs 200 billion.
The government announced last month that it would increase the electricity tariff by Rs 1.95 per unit. Previously, the regulator allowed an increase in electricity rates of Rs 3.30 per unit for the year 2019-20. regulator. However, the government claims it will provide subsidies of Rs 186 billion to impose uniform tariffs for power consumers. The government gave a subsidy of Rs 144 billion last year.
Following the NEPRA decision, the Power Division sent a summary to the federal cabinet to increase electricity rates gradually. The cabinet has already approved an increase in the tariff through the distribution of the summary.
During a hearing, Power Division officials stated that the increase in the tariff will not apply to K-Electric consumers. The regulator said there will be a separate hearing on the tariff for KE consumers. Member Nepra said that section 31 of the Nepra law, which ensures a uniform tariff across the country, does not apply. He sought the legal justification for the increase in electricity rates at Rs 1.95 per unit.
The Power Division official said that a uniform tariff is sought to meet the revenue needs of electricity distribution companies (Discos). The joint secretariat said the government wants an increase in the tariff for all consumers, including lifeguard consumers.