NEPRA approves Rs4.96 per unit increase in electricity tariff

The National Electric Power Regulatory Authority (NEPRA) Friday approved an increase in the electricity base tariff by Rs 4.96 per unit for the financial year 2023-24, reported 24NewsHD TV channel.

This decision, if implemented, will have a substantial impact on consumers across the country.

The proposed increase in the basic electricity tariff has been forwarded to the federal government for final approval. If the government gives the green light, consumers will face an additional burden of approximately Rs 500 billion. This increase will raise the average basic electricity tariff from Rs 24.82 to Rs 29.78 per unit.

The final decision regarding the implementation of the electricity price hike rests with the federal cabinet. The cabinet will consider whether to implement the increase all at once or gradually over time. It is worth noting that this will be the first time in the country's history that the basic electricity tariff has been increased by any government.

According to sources, if approved, the average basic tariff will rise by Rs 12.87 per unit annually, resulting in an average basic tariff of Rs 29.78 per unit. After adding sales tax, the average tariff will reach Rs 35.14 per unit, with a sales tax rate of Rs 5.36 per unit on the base tariff of Rs 29.78.

This development comes on the heels of the government's previous decisions to impose an additional burden of over Rs 1,000 billion on electricity consumers. In the last financial year, the government increased the basic electricity tariff by Rs 7.91 per unit, along with the imposition of an extra surcharge of Rs 3.39.

Consumers have already felt the impact of these adjustments, including quarterly and monthly increases, resulting in a higher cost of electricity. The surge in tariffs has placed a strain on consumers' budgets, exacerbating their financial challenges.

The government needs to strike a balance between meeting the energy needs of the country and ensuring affordability for consumers. While the increase in tariffs may generate revenue, it is vital to consider the potential impact on households and businesses, particularly those already grappling with economic hardships.

As the decision on electricity tariffs awaits final approval, consumers remain anxious about the potential implications on their financial well-being. The government must address public concerns, provide clarity on the justification behind the increase, and work towards finding sustainable solutions that balance the needs of consumers and the energy sector.