National Electric Power Regulatory Authority had planned to increase the current power tariff from 11.52 to 13.81 per unit. Government has rejected this proposal as it would have an adverse impact on consumers. Although, government has decided a 29 paisa per unit surcharge in order to counterbalance the 30 paisa reduction of fuel prices. Considering that it will not cause much burden on consumers.
A statement issued by Prime Minister Office states, that the use of costly fuel in the power plants causes higher generation cost and tariff, and government is trying to absorb its impact to avoid burdening consumers. The power generation mechanism has also been installed to cut the expenses.
The statement also said that new projects have been persuaded by the use of cheaper fuel like coal and hydral to minimize the cost of production. These projects will generate an estimated capacity of 10,400 MW.