NEPRA increases power tariff for K-Electric consumers

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has notified an increase of Rs1.44 per unit in the power tariff for K-Electric (KE) consumers on monthly fuel adjustment charges, ARY News reported on Friday.

According to the notification issued by the power regulator authority, the hike in the power tariff for K-Electric consumers was approved on account of fuel charge adjustment (FCA) for May.

In a notification issued on Friday, the regulator said it had “decided to allow (Rs1.44 per unit) positive fuel cost adjustment (FCA) for May, to be passed on to the consumers in their monthly bills of July”.

Meanwhile, the increase in electricity tariff will not be applicable to lifeline consumers, the notification stated.

Earlier in the day, it was reported that NEPRA is set to increase electricity base tariff for the ongoing financial year 2023-24 in response to the International Monetary Fund’s (IMF) disbursement of $1.2 billion under the recently approved $3 billion bailout deal.

Read More: NEPRA hikes electricity tariff for KE consumers

Sources privy to the matter told ARY News that the regulator will jack up electricity base tariff by Rs4.96 per unit. “The power regulatory authority will forward its decision to federal cabinet today,” they say, adding that the final decision on the increase in power tariff would be taken by cabinet.

Previously, NEPRA had developed three possibilities for a new base tariff: below Rs. 8 per unit, below Rs. 7 per unit, and below Rs. 6 per unit. Earlier, it determined the base tariff increase of up to Rs. 5 per unit.

IMF bailout

Pakistan on Thursday received the first tranche of $1.2 billion from the International Monetary Fund under the SBA programme.

Dar said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.

Recently, the International Monetary Fund (IMF) approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.