NEPRA again shocks consumers
ISLAMABAD: NEPRA gave another big shock to electricity consumers on Wednesday and announced an increase of Rs 5.40 in the price per unit of electricity.
NEPRA approved this hike in power tariff in the name of the quarterly adjustment. The increase in power tariff will be included in the August bills, to be payable in September.
After including the impact of taxes, the actual hike in the power tariff will be around Rs 7 per unit. Thus, in less than a month, NEPRA has thrown another major bomb of hike in power tariff on consumers.
However, the new tariff will not be applicable to lifeline and K-Electric consumers.
NEPRA had conducted a hearing on an application by distribution companies to increase the tariff by Rs5 per unit.
The application was submitted for the fourth quarter adjustment of 2022-23. FESCO demanded an increase of Rs23.49 billion, GEPCO sought Rs16.13 billion, while HESCO and IESCO had sought a raise of Rs9 billion each.
Undoubtedly, the frequent increase in the cost of tariffs is part of the IMF bailout program, irrespective of its devastating effect on consumers.
This fresh increase in the power tariff will make it difficult for consumers to pay hefty power bills in September.
NEPRA notifies massive hike in power tariff in July: NEPRA again shocks consumers
Earlier, the NEPRA notified a record hike in tariff, up to Rs7.50 per unit to meet a condition of the IMF and appease the federal government.
NEPRA said that the new tariffs would come into effect from July 1, 2023.
NEPRA Tower Islamabad held a public hearing on the matter on Monday (July 24). During hearing, NEPRA approved the federal government’s application for the tariff hike.
The power ministry submitted that the required increase requested through the “Instant Motion” aligns with NEPRA’s overall revenue requirement.
Despite the proposed increase, the government would still be providing a subsidy of Rs158 billion, according to the notification.
Last Saturday, the federal cabinet authorized the significant increase in the base tariff of electricity.
The tariff is set to increase up to Rs7.50 per unit, in contrast to the national average tariff determination of Rs4.96.
Prime Minister Shehbaz Sharif said that the recent increase in the power tariff would not apply to lifeline consumers and protected category consumers.
Notably, just a few days before the dissolution of assemblies, the federal cabinet exploded a big bomb of ‘Bijly’. The cabinet approved a massive increase in the base tariff of electricity _ up to Rs7.50 per unit.
Notably, the actual tariff would be much higher when considering surcharges, taxes, duties, and levies, in addition to monthly and quarterly adjustments
Earlier, the government had planned only a Rs 4.90 per unit increase in the national average tariff.
However, on Saturday, the coalition government decided to ‘do more’ and explode the bomb of ‘Bijly’ before completing its term.
According to the previous government’s Federal Secretary of Energy, Rashid Mahmood Langrial, the new tariff will be applicable from the back date (July 1).
