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Federal Govt. increases power tariff by 26 paisas per unit

The federal government has increased in power tariff up to Rs0.26/unit to be collected over next 12 months from power consumers on account of periodic adjustment for first quarter (July-Sept 2019/20). It will be applicable from December 1, 2019.

A notification by the The Ministry of Power was issued dated 29 November, 2019 and however it has been posted on the NEPRA’s website on Dec 5, 2019, saying that after this increase, the government would collect around Rs14.7 billion over the next one year.

The tariff increase has been notified on account of periodic adjustments for 1st quarter of FY 2019-20 as determined and recommended by the National Electricity Power Regulatory Authority (Nepra).

However, there will be no increase for domestic power consumers consuming less than 300 units/month, but 7 paisa increase has been made for residential consumers of more than 300 units, including TOU meters holders.

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The increase has been made of 26 paisa/unit, for commercial, general bulk consumers and industrial sector.

Furthermore, this increase will also not affect the privatised K-Electric.

In the notification, the Power Division has said that this adjustment had been notified along with tariff differential subsidy for domestic consumers and additional charge of Rs0.11per unit for maintaining uniform tariff on all category of consumers (except domestic consumers) so that the consolidated revenue requirement approved and determined by Nepra on November 26, 2019 is maintained.

Saman Siddiqui

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