Power tariff to be hiked in phases

ISLAMABAD: Meeting one of the demands of International Monetary Fund (IMF), the electricity tariff would be raised in phases.

As for now, the government on Saturday approved Rs8 per unit increase in the price of electricity for both domestic and commercial consumers, local media reported.

Electricity’s basic as well as quarterly tariff will be raised while arrangements are also being made to withdraw the subsidy.

It has been learnt that the government is even ready to withdraw the subsidy it had offered to the export sector.

The tariff under the head of quarterly adjustment will be increased in phases.

According to the circular debt management plan, which was presented to the IMF, the government will jack up electricity price by Rs7.91 per unit in four quarterly adjustments – Feb-March 2023, March-May 2023 June-Aug and September-November. Under the circular debt management plan, the government will charge Rs3.21 per unit from now onwards, 69 paise from March-May and increasing again to Rs1.64 per unit from June onwards to August of 2023. From Sep-Nov, the govt will hike power tariff by Rs1.98 per unit.

The consumer base tariff will be increased from Rs15.28 per unit in June 2022 to Rs23.39 per unit till June 2023. Only in the ongoing month of February, power rates under the head of quarterly adjustment will be raised by Rs4.46 per unit.

The government also plans to reduce line losses. The government also okayed surcharge of Rs3.39 per unit to be immediately included in the bills of consumers.

As a consequence of the withdrawal of subsidy, electricity prices will reach Rs23.39 per unit in June.

On the other hand, people should now brace for further hike in the power tariff as a petition has been filed by the power distribution companies in the National Electric Power Regulatory Authority (Nepra).

The Authority will hear the petition for an increase in the electricity rate under the head of quarterly adjustment on February 22, 2023.

If the request is accepted, the increase will enable them to receive over 17.19 billion from the consumers.

LESCO has requested for receiving over Rs6.34 billion, GEPCO over Rs6.56 billion, FESCO over Rs4.47 billion, MEPCO over Rs2.40 billion and IESCO over Rs1.32 billion from the consumers.