Business
Power tariff likely to increase by Rs4.99 per unit
New tariff is expected to be implemented from July 1, 2022
Islamabad: Ceding to the demands of the International Monetary Fund for the release of USD 1 billion tranche of the loan, the Pakistani government led by Prime Minister Shehbaz Sharif has decided to hike the electricity prices by Rs 8.
According to details, a substantial hike in the base price of electricity of up to Rs7-7.50 per unit is expected to be implemented on July 1, 2022 to ensure the restoration of the IMF programme.
According to the Ministry of Energy, the increase in the price of electricity will be in the form of a base tariff. The current average base tariff is Rs16.64 per unit, which is likely to increase by Rs7 to Rs7.50 per unit to Rs24.14 per unit.
NEPRA has completed hearings on the revenue requirements applications of 10 power distribution companies. A decision on the applications is expected this week. Following the decision of NEPRA, the Power Division will make the final decision while the federal government will also decide on the targeted subsidy.