The federal government has on Friday approved to increase the price of electricity by Rs 1.72 per unit.
Federal Cabinet approves summary through circulation told the sources of Cabinet Division.
According to sources, the government has decided to increase the price of electricity in 3 different quarterly adjustments.
Moreover, the government has decided to increase the price of electricity by 82 paisa per unit in the fourth quarter of the financial year 2020.
In the first quarter of the financial year, the government approved to increase the price of electricity by 90 paisa per unit in terms of adjustments, told the sources.
The increase in electricity prices will be implemented from October 2021, sources said.
It is pertinent to mention here that earlier in March 2021, the National Electric Power Regulatory Authority (NEPRA) had notified 89 paisa per unit increase in the electricity rates.
According to the details, the rates were increased to generate about Rs 6.9 billion additional revenue.
NEPRA held a public hearing on February 25 on the Central Power Purchase Agency’s (CCPA) request for an increase in power.
The CCPA had requested an increase of 92 paisa per unit in electricity rates in the context of January’s monthly fuel charges adjustment. NEPRA then reserved the verdict after completing the hearing.
However, NEPRA had approved an increase of 89 paisa per unit in the price of electricity. That had only apply to March bills, but not to K-Electric consumers.
It may be recalled that in the hearing held on February 25, NEPRA officials had said that running power plants outside the merit order had imposed an additional burden of Rs 3.90 billion on consumers.
The reason for the increase in the cost of power generation was the unavailability of gas.