Increase to Impose Approximately 600 Billion Rupees Burden on Consumers
In a significant development affecting millions of consumers nationwide, the federal cabinet has greenlit a hike in the basic electricity tariff, marking a substantial increase that is set to impose an additional financial burden of approximately 600 billion rupees on consumers.
The decision, which was circulated and approved through the federal cabinet, follows a recommendation from the National Electric Power Regulatory Authority (Nepra). Nepra had proposed an increase of Rs 5.72 per unit in the basic electricity tariff, effective from July 1, 2024, for the fiscal year 2024-25.
Sources familiar with the matter disclosed that Nepra had sanctioned an increase in the average basic electricity tariff from Rs 29.78 to Rs 35.50 per unit. However, the federal cabinet’s decision will now be forwarded to Nepra to enforce a uniform tariff structure through an official notification.
The move comes amidst obligations imposed by the International Monetary Fund (IMF), requiring the government to implement the tariff hike by July 10. This increase, as per sources, aims to align with IMF conditions and ensure financial sustainability in the energy sector.
Consumers across various sectors and regions are expected to feel the impact of this tariff adjustment, which aims to address fiscal challenges in the energy sector but is likely to strain household budgets and operational costs for businesses nationwide.
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