Power tariff up by Rs7.91 per unit

The government had increased the base power tariff by Rs7.91 per unit early this month to revive the IMF’s stalled Extended Fund Facility (EFF)

By Israr Khan

July 23, 2022

Power tariff up by Rs7.91 per unit. File photo

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Friday approved the federal government’s request to charge the end-consumers of all power distribution companies, including K-Electric, a uniform tariff and collect the recently-increased base power tariff of Rs7.91 per unit from the consumers in the Financial Year 2022-23.

The government had increased the base power tariff by Rs7.91 per unit early this month to revive the IMF’s stalled Extended Fund Facility (EFF).

Following the increase, the power distribution companies will recover an additional Rs893.83 billion from the consumers during the ongoing fiscal. However, this increased tariff would be recovered in three phases i.e. July 2022, Aug-Sep 2022 and October 2022 onward.

The tariff has been determined for the FY2022-23, which on the National Average is Rs24.82/kWh, and is 46.7 percent or Rs7.91/kWh higher than the earlier determined national average tariff of Rs16.91/kWh, the power regulator said in a statement on Friday. It said the Nepra had intimated the determined tariffs to the federal government for a notification.

After this determination, the federal government, as per the Nepra Act, filed a motion for determination of a uniform consumer-end tariff incorporating subsidies and surcharges for all the XWDISCOs and K-Electric.

The government had proposed in its application that the base power tariff for all distribution companies (DISCOs), including K-Electric, be increased in three phases i.e. Rs3.50 per unit increase in July, Rs3.50 from August, and Rs0.91 per unit hike from October 2022.

On this application, the Nepra held a public hearing on July 20 and subsequently approved the request of the federal government. No increase has been proposed for the ‘Life Line’ and ‘Protected’ category of consumers. The said decision would be applicable once the federal government notifies the same, said the power regulator.

Prime Minister Shehbaz Sharif has granted anticipatory approval to hike the base power tariff by Rs7.91/unit. The base tariff could go up to around Rs29.034/unit after the imposition of 17 percent GST on per unit.