In an effort to meet IMF requirements, the federal cabinet recently approved a second significant increase in electricity costs.
The decision to increase electricity costs came as a shock to the general public, who are already dealing with the effects of inflation.
The cost of one unit of power has increased from Rs. 3 to Rs. 7.50 under the new pricing structure. Through circulation, the federal cabinet authorised this significant price adjustment.
The National Electric Power Regulatory Authority (NEPRA) had previously approved an increase in electricity rates for the current fiscal year. NEPRA received a request from the federal government to increase the cost of basic power; the authority is anticipated to hold a hearing on this proposal before making a final decision.
Depending on usage levels, different pricing modifications are recommended. The price increase per unit is fixed at Rs. 3 for those who use 100 units of power. After the plan is approved, the power price will be Rs. 4 per unit for those consuming 101 to 200 units.
Similar to this, an increase in price of Rs. 5 per unit is planned for electricity users who use 201 to 300 units. There will be an increase in price of Rs. 6.50 per unit for those consuming 301 to 400 units. In addition, the government has suggested a considerable rise of Rs. 7 per unit for those who use 400 to 700 units of electricity.
The federal government will issue a formal notification to adopt the suggested tariff increase once Nepra completes its evaluation. The price rise is expected to take effect on July 1.
