In an effort to meet the requirements of the IMF, the federal cabinet has approved yet another significant increase in electricity prices.
The public, which is already dealing with the effects of inflation, was given a powerful shock by the decision to raise electricity prices.
The cost of one unit of electricity has increased under the new tariff structure from Rs. 3 to Rs. 7.50. Through circulation, the federal cabinet approved this significant price adjustment.
An increase in electricity rates for the current fiscal year had previously been approved by the National Electric Power Regulatory Authority (NEPRA). NEPRA received a request from the federal government to increase the cost of basic electricity; before making a decision, the authority is expected to hold a hearing on this request.
The suggested price changes change based on consumption levels. The price increase per unit is set at Rs. 3 for customers who use 100 units of electricity. After the proposal is approved, the electricity rate will be Rs. 4 per unit for those using 101 to 200 units.
Similar to this, an increase in the price of Rs. 5 per unit for electricity users using 201 to 300 units are being proposed. The price is expected to rise by Rs. 6.50 per unit for those using 301 to 400 units. A significant increase of Rs. 7 per unit has also been proposed by the government for customers who use 400 to 700 units of electricity per month.
The federal government will issue a formal notification to implement the suggested tariff increase after Nepra completes its evaluation. The price increase is anticipated to take effect on July 1.
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