Pakistani electricity consumers are set to face a double-edged sword. On the one hand, there’s a sigh of relief with a significant reduction in petrol prices. However, on the flip side, a substantial hike in electricity tariffs is on the horizon.
The National Electric Power Regulatory Authority (NEPRA) has proposed a substantial surge in electricity tariffs, following directives from the International Monetary Fund (IMF). The proposed increase is a hefty 6.51 rupees per unit, a move that is likely to impact consumers significantly.
NEPRA’s proposal details an increase of 27.11 rupees per unit in the Power Purchase Price (PPP). This marks a considerable rise from the current rate of 20.60 rupees per unit. The objective behind this move is to establish the base rate for the forthcoming fiscal year.
As per the IMF’s instructions, NEPRA is set to finalize this base tariff starting July 1, 2024. This comes as the IMF is currently in Pakistan, negotiating with the authorities for the sanctioning of a loan amounting to 6 to 8 billion dollars.
Post the determination of the base tariff by the Ministry of Energy, the rate is expected to escalate from 29.78 rupees to 36.28 rupees per unit. Following this price adjustment, domestic consumers will be charged 48.51 rupees per unit during peak hours.
While the reduction in petrol prices brings some good news, the impending electricity tariff hike could offset this benefit. As consumers brace for these changes, the mixed bag of news underscores the dynamic nature of the energy sector.
