Pakistan NEPRA Proposes Electricity Tariff Increase

  • The proposed electricity tariff increase will be implemented after the federal government’s approval and applied to K-Electric consumers.
  • The International Monetary Fund (IMF) rejected the Pakistan government’s proposal to give relief to the power consumers using over 200 units monthly.

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has proposed an increase of electricity tariff by Pakistan Rupee 3.28 per unit on account of quarterly adjustment, ARY News reported. The NEPRA has decided to increase the electricity tariff, preparing to throw an additional burden of Rs 160 billion on the power consumers.

The regulatory authority has sent the summary to the caretaker federal government, proposing an increase of PKR 3.28 in electricity tariff under the fourth quarter adjustment of the financial year 2022-2023. The increase will be implemented after the federal government’s approval and applied to K-Electric consumers. The power consumers would have to make additional payments in the next six months (October 2023 to March 2024).

Meanwhile, protests were held across Pakistan against the rise in the power tariff and the inclusion of excessive taxes in the electricity bills. The unrest over increased electricity bills comes as cash-strapped Pakistan faces an economic crisis with inflation hovering at around 29 per cent.

Recall that the International Monetary Fund (IMF) had rejected the Pakistan government’s proposal to give relief to the power consumers using over 200 units monthly. IMF said that circular debt will not come down if relief is given on electricity bills. The relief in terms of delayed bill payments will only be given to consumers who continuously use under 200 units for six months. The relief will be revoked if a consumer’s bill exceeds 200 units in six months.

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