In a move likely to compound the financial difficulties faced by inflation-burdened citizens, the federal government announced a Rs2.56 per unit increase in the power tariff on Thursday.
This adjustment, pertaining to fuel cost adjustment (FCA) for June, will be reflected in electricity bills issued in August.
This tariff hike is part of a strategy to bolster Pakistan’s chances of securing a new programme from the International Monetary Fund (IMF). The National Electric Power Regulatory Authority (Nepra) has officially notified the increase, which will exclude lifeline and K-Electric consumers.
The new tariff adjustment is expected to impose an additional financial burden of Rs33.45 billion on consumers. With the inclusion of an 18 per cent GST, this figure is projected to rise to Rs39 billion. The Central Power Purchasing Agency (CPPA) had proposed a slightly higher increase of Rs2.63 per unit under the FCA.
The surge in electricity costs, coupled with escalating taxes, has sparked significant public dissatisfaction, leading to protests and sit-ins from communities already struggling with the rising cost of living.
This public outcry has pressured the government to explore options for reducing electricity rates in an effort to alleviate some of the financial strain on the populace.
Last month, Prime Minister Shehbaz Sharif’s administration had already implemented a substantial increase in the base electricity tariff for domestic consumers, raising it to Rs48.48 per unit. Consumers in Karachi were also affected by this hike.
However, a temporary reprieve was granted to those using up to 200 units per month, who will not see their rates increase for the next three months.
Additionally, the power regulator has approved the federal government’s request for tariff increases affecting commercial, general services, bulk, and agricultural consumers.
