Govt Hikes Power Tariff by Rs. 3.50 Per Unit With Immediate Effect

The Federal Minister for Power, Khurram Dastagir, on Tuesday said the Federal Cabinet has approved rebasing the power tariff under which the Federal Government has raised electricity rates by Rs. 3.50 per unit with immediate effect. According to the details, the increase in the power tariff would have minimal impact on consumers as the amount was already being charged in fuel surcharges.

Dastagir added that after the increase in the power tariff, the amount charged in the fuel cost adjustments (FCAs) would go down as it would be reflected in the new power tariff, which would be implemented in phases.

In the first phase, the power tariff would be increased by Rs. 3.5 per unit from 26th July onwards, which will be followed by an increase of another Rs. 3.5 per unit from August with a final increase of Rs. 0.90 per unit being implemented from October 2022 and the electricity tariff would go downwards from November 2022.

The Minister said that the average electricity calculated for the month of June stood at Rs. 21.50 per unit. “Thus the electricity price would increase till December, and would then reduce to Rs24 per unit as the government would receive a major chunk of fuel adjustments till then,” he added.

Dastagir added that prices of energy commodities including coal and gas have increased in the international market. “We are receiving gas from friendly countries under long-term agreements.” he said, “However, it has been difficult to purchase more than that,” he added.

He said that the Government remains adamant to safeguard the interest of the poor segment of society, adding that coming months are going to be difficult but the situation will improve starting November and December. He stated that cabinet approval has come on condition that it will have no impact on the poorest consumers.

Furthermore, the Minister added that power generation has improved owing to the increase in hydel generation from Tarbela, which has reached 4,500 MW and resumption of the 1,100 MW Karachi Nuclear Power Plan – 2 (also known as K-2 Power Plant).

He added that over 13 million households, which translates into 45% of the country’s population would remain unaffected by the latest increase in the power tariff. He also blamed the previous Government for not rebasing since February 2021, which is the reason customers were paying high prices in the form of Fuel Charges Adjustments (FCA).

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