Power consumers to face higher electricity prices as govt increases tariff

WEB DESK: In a move that will add to the financial strain of inflation-hit consumers, the federal government has announced a Rs2.56 per unit increase in electricity tariffs under the fuel cost adjustment (FCA) for June. This change will be reflected in August’s electricity bills.

The National Electric Power Regulatory Authority (Nepra) has issued a notification regarding the new tariff hike. However, this increase will not affect lifeline consumers or those served by K-Electric.

The latest hike is expected to place an additional financial burden of Rs33.45 billion on consumers. When the 18 per cent Goods and Services Tax (GST) is applied, this amount is projected to rise to Rs39 billion.

According to Geo News, the Central Power Purchasing Agency (CPPA) had initially requested a Rs2.63 per unit increase. The rising cost of electricity and heavy taxation have been significant sources of public discontent, leading to widespread protests and sit-ins from citizens grappling with the escalating cost of living.

In response to growing public pressure, the government is exploring measures to reduce electricity rates in an effort to provide some relief.

Last month, Prime Minister Shehbaz Sharif’s administration had already significantly raised the base electricity tariff for domestic consumers to Rs48.48 per unit, including those in Karachi.

However, consumers using up to 200 units per month were exempted from this increase for a period of three months.

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