Power tariff up by Rs2.89 per unit for KE consumers

ISLAMABAD: The federal government Monday notified up to Rs2.89 per unit hike in power tariff for K-Electric consumers effective from September 1.

The Power Division notified the increase from Rs1.09 to Rs2.89 per unit. The K-Electric will increase the power price from September 1. The notification states, “In pursuance of sub-section (7) of Section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the federal government is pleased to notify as under the adjustment approved on account of quarterly adjustments wef September 1, 2020 as determined as recommended by National Electric Power Regulatory Authority (NEPRA) vided decision of dated December 31, 2019 in respect of K-Electric Limited,” the Power Division said in notification.”

The Power Division said the recommended quarterly adjustment to the tune of Rs4.87 being differential between the schedule of tariff recommended by Nepra for April-June 2019 and the schedule of tariff earlier recommend by Nepra and reflected in the K-E notification be notified for each category of consumer to the extent of bringing K-Electric consumers end tariff on a par with what is currently in field for consumer of XWDISCC (increase in rate of Rs1.09 to Rs.2.89/kWh for various categories of consumers) approved/ratified by the Cabinet Division on September 11, 2020.

Any difference between the two rates be made available by way of subsidy which shall amount to Rs26 billion only. The base tariff for the K-Electric was Rs11.22 per unit, which would be increased by up to Rs2.89 per unit following the notification.

The Nepra had determined an increase of Rs4.87 per unit or 44 percent in power tariff on account of previous years’ adjustments. The total revenue impact of tariff hike of Rs4.87 per unit was nearly Rs106 billion.