Govt approves massive hike in power tariff by Rs7.5 per unit

Govt approves massive hike in power tariff by Rs7.5 per unit

Govt approves massive hike in power tariff by Rs7.5 per unit

Government approves massive hike in power tariff by Rs7.5 per unit.

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  • Cabinet approved increasing power tariff up to Rs7.5 per unit.
  • The price hike includes consumers of K-Electric.
  • NEPRA will hold a public hearing to finalize the decision.
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ISLAMABAD: The federal cabinet has given its approval for a massive increase of up to Rs7.5 per unit in the base power tariff, adding to the woes of inflation-hit people.

The power regulator National Electric Power Regulatory Authority (NEPRA) had raise the national average tariff by almost Rs5 last week.

The power ministry sent a letter stating that the federal cabinet has approved the regulator’s proposal seeking price hikes in the uniform tariff.

The price hike will take effect from July 1 and includes consumers of K-Electric among the power distribution companies (Discos).

It said lifeline consumers using up to 100kW per month and the protected segment consuming up to 200kW will be exempted from the hike. Hence, lifeline consumers using up to 50kW will continue paying Rs3.95 per unit while those using between 51-100kW will continue paying Rs7.74 per unit.

The base tariff for protected consumers using between 1-100kW every month will remain at Rs7.74 per unit while for protected users consuming between 101-200kW, the rate will remain at Rs10.06 per unit.

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However, for unprotected residential consumers using up to 100kW per month, the base tariff has been hiked by Rs3 per unit, reaching Rs16.48, while those consuming between 101-200kW will be paying Rs22.95 per unit after an increase of Rs4.

The power users consuming between 201-300kW will face a price hike of Rs5 per unit and will end up paying Rs27.14 per unit. An increase of Rs6.50 per unit for consumers in the 301-400kW category will result in them paying Rs32.30 per unit.

For consumers using between 401-500kW, the price has been increased by Rs7.5 per unit, taking the new rate to Rs35.24, while an equivalent hike for those consuming between 501-600kW will take the rate to Rs36.66 per unit.

Similarly, for those consuming between 601-700kW, the base tariff has been increased by Rs7.50, reaching Rs37.8 per unit while an equal hike for consumers using more than 700kW has taken the new tariff to Rs42.72 per unit.

It may be mentioned that after including sales tax at the rate of 18 percent, the maximum power tariff for those using more than 700kW will reach Rs50.41/kWh.

After approving Nepra’s proposal, the cabinet filed a motion to “reconsider and issue” the new uniform tariffs for the power utilities and K-Electric. NEPRA announced it will hold a hearing on July 24 (Monday) to finalize the decision.

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