Govt hikes per unit electricity price by Rs3.33 in fuel adjustment charges

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Govt hikes per unit electricity price by Rs3.33 in fuel adjustment charges

ISLAMABAD, JUL 5: The National Electric Power Regulatory Authority (Nepra) on Friday notified 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), further burdening the inflation-hit masses.

An official notification for the price hike stated the latest adjustments have been made on account of variations in the fuel charges in the approved tariff of ex-Wapda Distribution Companies (XWDISCOs), which will be reflected in the bills issued in July 2024.

It stated that the said adjustment of Rs3.3287/kWh will be applicable to all the consumer categories except the Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

Nepra directed all the concerned XWDISCOs to keep in view and strictly comply with the orders of the courts notwithstanding this order.

However, the hike is not applicable to the K-Electric, as the authority approved a cut in electricity prices for Karachi-based consumers.

As per a separate notification, Nepra has provided a relief of Rs1.6716 per unit of electricity on account of monthly FCA in the approved tariff for the month of April 2024.

It stated that the price cut will be applicable to all the consumer categories except the electric vehicle charging stations lifeline consumers, agriculture consumers and domestic consumers consuming up to 300 units of electricity.

Moreover, the domestic consumers having the Time of Use (ToU) meters have also been exempted from the said adjustment, irrespective of their consumption level.

The KE will reflect the said FCA in the billing month of July 2024.

Earlier this week, the federal cabinet decided to increase tariff on electricity in a bid to implement a major condition of the International Monetary Fund (IMF), as the country looks to clinch a staff-level agreement on a bailout of more than $6 billion this month.

The South Asian country has set challenging revenue targets in its annual budget to help it win approval from the global lender for a loan to stave off another economic meltdown, even as domestic anger rises at new taxation measures.

Pakistan has set a tax revenue target of Rs13 trillion for the fiscal year that began on July 1, a near-40% jump from the prior year, and a sharp drop in its fiscal deficit to 5.9% of gross domestic product from 7.4% the previous year.