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Home Business & Stock

Govt increases electricity rates by 1.68 per unit

MM News Staff by MM News Staff
October 15, 2021
source: online

source: online

ISLAMABAD: The federal government has decided to increase the power tariff by 1.68 rupees per unit.

According to sources, the federal government has approved the orders under the tariff adjustment rate for all consumers. The cabinet has approved the increase in power tariff through a circulation summary.

the government increased electricity prices by Rs1.68 per unit after a summary sent by the Ministry of Energy for approval. Earlier, in August the rates were increased of 1.95 per unit under fuel adjustment for 2021.

According to a notification issued in this regard, the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs2.7 per unit. It was clarified that the FCA for August 2021 will be charged with the bill of October 2021, which will be paid by all consumer categories of distribution companies, except for lifeline and K-Electric consumers.

Read also: Sindh govt to collect two taxes through electricity bills

The maximum per-unit electricity price is proposed at Rs24.33 per unit for domestic consumers – that is almost double the average per-unit cost of generation of Rs12.96 per unit.

The maximum hit has been given to the monthly consumers of over 700 units and the domestic consumers who were forced to use Time of Use metres. The power tariff decision will result in the reduction of electricity subsidies by Rs72 billion during the remaining period of this fiscal year. The increase the electricity prices will be effecive from November 1.

The decision to increase the prices was taken during the time when Tarin was in Washington to conclude the talks with the IMF under the 6th review that began in Islamabad on October 4. The successful culmination of the talks would pave the way for the release of the next loan tranche of $1 billion.

Tags: electrityNEPRApakistan
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