Tag: per unit electricity prices

  • Electricity prices increased by Rs2.56 per unit under fuel cost adjustment

    Electricity prices increased by Rs2.56 per unit under fuel cost adjustment

    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.

  • Major relief announced for power consumers using less than 200 units

    Major relief announced for power consumers using less than 200 units

    Prime Minister Shehbaz Sharif has unveiled a substantial relief package worth Rs50 billion aimed at domestic electricity consumers.

    This initiative, set to benefit those using up to 200 units per month, will be in effect for the months of July, August, and September.

    The announcement was made during a ceremony on energy sector reforms held in Islamabad this afternoon. According to the Information Ministry, the relief package is designed to assist 25 million domestic consumers, which constitutes 94 per cent of the total domestic user base.

    Under the terms of the package, the cost of electricity per unit will range between Rs4 and Rs7. This subsidy will also extend to K-Electric consumers. The PM noted that the funding for this initiative will come from the development fund.

    “This decision has been taken to provide relief to the common man in the wake of rising electricity prices,” PM Shehbaz stated

    He acknowledged that the summer months are particularly challenging due to higher electricity consumption. However, he expressed optimism that from October onwards, as the weather cools, electricity usage will naturally decrease.

    PM Shehbaz also reiterated his commitment to addressing the country’s economic challenges, emphasising that tackling corruption is essential for economic recovery. He assured the public that the coalition government is united in its efforts to overcome these difficulties.