NEPRA approves Rs3.99 per unit hike in electricity tariff

NEPRA approves Rs3.99 per unit hike in electricity tariff

Islamabad (Web Desk): The National Electric Power Regulatory Authority (NEPRA) on Tuesday approved Rs3.99 per unit increase in electricity price.

According to a NEPRA notification, the power tariff has been increased on account of fuel cost adjustment (FCA) for the month of April 2022.

The Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs4.5 per unit, notification said.

The FCA for April 2022 will be charged with the bill of June 2022, which will be paid by all consumer categories of distribution companies, except for the lifeline consumers of all the XWDISCOs.

CPPA said that a total of 12.55 billion units worth Rs133 billion were produced in previous month.

The latest hike in power tariff will impose an additional burden of over Rs51 billion on consumers.

Meanwhile, the government is reportedly considering an option to increase electricity prices by Rs8 per unit from July in order to revive the $6 billion International Monetary Fund (IMF) programme.

Currently, the basic power tariff is Rs16 per unit and if the government adheres to the IMF's demands and the power distribution companies' request, it will be more than Rs24 per unit.

The international lender has demanded of the government to end the subsidies on fuel, electricity and food items for the release of $1 billion loan tranche.

The prices of fuel have already been jacked up by Rs30 per litre in line with the IMF's demand.