Summary Prepared To Increase Power Tariffs

The electricity prices are likely to be increased by Rs 3.75 per unit.

Islamabad (UrduPoint / Pakistan Point News – 15th October, 2018) The government has prepared a summary to increase the power tariffs.

According to media reports, the electricity prices are likely to be increased by Rs 3.75 per unit.

With this rise, at least Rs 400 billion will be collected from the electricity consumers monthly.

The hike in power tariffs has been suggested for 2016-17 and 2017-18.

However, the government has not made any formal announcement in this regard yet. The final decision will be made in the meeting of Economic Advisory Council, to be chaired by Finance Minister Asad Umar.

The power tariffs will be increased after approval from the government.

Earlier this month, the electricity prices were increased by Rs 1.16 per unit.

The increase in electricity tariff was done under monthly fuel adjustment.

The electricity consumers will pay additional Rs 16 billion this month.

According to details, the National Electric Power Regulatory Authority (NEPRA) had approved increasing electricity tariff by Rs 1.16 per unit. The increase in electricity tariff has been done under fuel price adjustment for August.

NEPRA sources said that the power purchasing agency had requested a Rs 1.5 per unit increase in the electricity tariff. The new prices will be implemented on all the power distribution companies except K-Electric.

The Economic Coordination Committee of the Cabinet (ECC) had earlier deferred its decision to increase electricity tariff and directed NEPRA and Power Division to prepare a comprehensive plan for improvement in service delivery in the power sector, reduction in transmission and distribution losses and maximizing recovery.

The meeting of the committee was held under the chairmanship of Federal Minister for Finance, Revenue and Economic Affairs Asad Umar here at the Cabinet Division.

On the proposal moved by the Ministry of Energy for the "Tariff Rationalization for Power Sector", the Committee also directed power division to ensure that while preparing the plan for any increase in power tariff; it should be ensured that the poor and lower end consumers are not unnecessarily burdened.