Govt proposes to increase electricity prices

Islamabad: The federal government is preparing to deliver another blow to the public already suffering from inflation by increasing electricity prices.

The sources close to the development said that the Central Power Purchasing Agency (CPPA) proposed a burden of Rs347 billion on electricity consumers for the upcoming fiscal year.

The CPPA submitted a request to NEPRA to set the purchase rates for electricity for the next fiscal year.

The sources said that the electricity consumers would also bear the cost of inflation in the United States, with a proposal to include a 2.40% increase in tariffs due to US inflation.

Besides it, there is a recommendation to incorporate a 12.20% operator fee based on domestic inflation rates.

It is reported that a 21.37% interest rate on electricity purchases is also recommended to be charged to consumers.

Furthermore, there is a proposal to collect up to Rs17.42 per unit under capacity charges.

The CPPA requested to set the fuel cost at Rs9.34 per unit and proposed that electricity companies sell electricity at a minimum of Rs27.11 per unit for the next fiscal year.

The electricity companies would include taxes before selling electricity to consumers.

Besides it, the sources revealed that a monthly operator fee of Rs3.48 per unit is proposed to be added to the electricity rates, and it is suggested that the electricity purchase price for the next fiscal year be set at Rs300 per dollar.