DNA
ISLAMABAD: After increasing petroleum levy and agreeing to impose tax on agricultural income, Prime Minister Shehbaz Sharif-led government has jacked up the base tariff for domestic consumers to up to Rs48.84 per unit.
The hike in electricity price, as per the notification issued by the Power Division, will also include consumers in Karachi, however, it will not apply to consumers using up to 200 units per month who have been exempted from the increase for three months.
The hike in tariff comes after the National Electric Power Regulatory Authority (Nepra) approved the federal government’s request seeking up to Rs7.12 per unit hike in electricity base tariff for domestic consumers last week.
The power regulator issued its decision of approval on the federal government’s application proposing hikes in electricity tariffs for domestic, commercial, general services, bulk, and agricultural consumers.
obtained a copy of Nepra’s 52-page decision which was sent to the federal government to implement the power tariff hikes after the latter proposed uniform tariff for all power distribution companies (Discos) and K-Electric.
Before that on July 5, Nepra had approved a hike of Rs3.3287 per unit in the electricity price for the month of May 2024 on account of monthly fuel charges adjustment (FCA) — the increase, however, didn’t apply to K-Electric consumers.
Meanwhile, the federal cabinet has also approved increasing the base tariff for commercial consumers by Rs8.04, agriculture consumers by Rs6.62, general services by Rs6.96, and Rs5.96 bulk consumers.
Following the hike, the base tariff for agricultural consumers has hit Rs46.83 per unit and Rs61.03 per unit for general services, the sources told the publication.
Whereas, after an increase of Rs5.51per unit, bulk consumers would pay Rs59.96 a unit from July. However, the cabinet maintained the base tariff of electricity for industrial consumers.
The exemption for those using up to 200 units of electricity per month comes as PM Shehbaz, while speaking at an event on Tuesday, had announced a three-month subsidiary for such consumers.
“These households make up 94% of the electricity consumers. This subsidy will be funded through our budget’s development fund,” he said.
Here’s an overview of the hike in electricity tariff for domestic consumers:
- 201 to 300 units — tariff increased by Rs7.12 to Rs34.26 per unit.
- 301 to 400 units — tariff increased by Rs7.02 to Rs39.15 per unit.
- Monthly tariff of 401 to 500 units — tariff increased by Rs6.12 to Rs41.36 per unit.
- 501 to 600 units — tariff fixed at Rs42.78 per unit.
- 601 to 700 units — tariff fixed at Rs43.92 per unit.
- 700+ units — tariff fixed at Rs48.84 per unit
Meanwhile, the tariff price per unit will increase further by adding taxes according to the slab. For Lifeline users up to 50 units per month, one unit will cost Rs3.95 per unit, while for consumers from 51 to 100 units will be Rs7.74 per unit.
The increase in tariff was aimed at improving Pakistan’s chances of securing a fresh programme from the International Monetary Fund (IMF).
Since then, the country has reached a three-year, $7 billion bailout programme which now needs to be validated by the fund’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth, the Washington-based lender said.
The new IMF programme has been endorsed by both the federal and provincial governments.
