The federal Cabinet has authorized the enactment of an ordinance that will raise the power tariff by at least Rs. 5.65 per unit. From now until October, the Cabinet approved an urgent summary to raise the power tariff by at least Rs. 5.65 per unit in order to recover Rs. 884 billion from customers. Excluding the effect of taxes, the Rs. 5.65 per unit increase would result in a 36% rise in the electricity bill.
This action is said to have been taken to keep the International Monetary Fund (IMF) program afloat. Meanwhile, the cost of electricity is projected to increase by 65 paisas per unit. The Central Power Purchasing Agency (CPPA) has applied to the National Electric Power Regulatory Authority (NEPRA) for the increase in electricity prices under the February 2021 fuel price adjustment.
According to the petition, the CPPA billed consumers a reference fuel tariff of Rs. 4.1414 per unit in February, but the actual fuel cost was higher, so it should be allowed to charge consumers an extra cost of Rs. 0.6573 per unit.