Energy Central Professional


Rs0.95 per unit increase in power tariff likely

Daily Pakistan Today  


    National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a hearing on Monday (24th January) regarding the power tariff hike by up to 95 paisa per unit with the start of the next month of February 2022.

    As per details, the government has been reducing the electricity subsidies as part of the understanding reached with the World Bank and the International Monetary Fund.(IMF).

    And, the Economic Coordination Committee of the Cabinet (ECC), after deliberation, had so far approved the summary presented by Ministry of Energy on Retargeting of Power Sector Subsidies - Phase -II, that included removal of one slab benefit (incremental block tariff) and incorporation of revised subsidy and inter-distribution companies tariff rationalisation/ cross subsidies.

    According to sources, the increase in basic tariff will abolish an Rs20 billion annual subsidy from the government and the recommendations would be considered during the NEPRA's hearing scheduled to be held on January 24.

    The sources said that the tariff for consumers utilising up to 100 units is likely to increase by 8 paisa per unit, for consumers of 200 units, prices will go up by 18 paisa, for users of 300 units, they will increase by 48 paisa. For consumers using 301-700 units, the effective tariff will increase by 95 paisa per unit.

    It is also learnt from sources that the new approved effective rate after NEPRA's approval for up to 100 units consumers will be Rs9.5 per unit, for 200 units consumers, the rate will be Rs10.36 per unit, for 300 units consumers, it will be Rs12.62 per unit, for 400 units, the new rate will be Rs15.73 and for 500 units, it will be Rs17.19.

    For users of 600 units, the rate would be Rs18.11 and consumers of up to 700 units will pay Rs18.75 per unit.

    It is pertinent to mention that for the agricultural consumers, the ECC had earlier approved to divide agriculture tube-wells slab into two categories on the basis of plot size and motor capacity and gradually decrease subsidies to Quetta Electric Supply Company (QESCO) tube-wells,.

    Reportedly, the ECC was informed that for implementation of Phase-II, a two-part approach is being proposed keeping in view the different timelines involved for proper analysis and firming up of proposal.

    Under the phase I, the government had restructured the electricity slabs from 300-700 units without changing the effective tariff.


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