Pakistan approves Rs5.72/unit power tariff hike

ISLAMABAD: The federal cabinet has approved an increase of Rs5.72 per unit in the basic power tariff through circulation, ARY News reported on Thursday, citing sources.

As per details, the hike was approved by the federal cabinet through a circulation summary, the source said.

The decision will be sent to the National Electric Power Regulatory Authority (NEPRA) for uniform tariff implementation, sources added.

The Power Division will file an application with NEPRA regarding the tariff hike.

NEPRA made this decision for the fiscal year 2024-2025, with the implementation set to begin on July 1, 2024. The average basic electricity tariff was approved to be raised from Rs 29.78 to Rs 35.50 per unit.

Pakistan’s power sector caused a Rs403 billion loss in FY2022-23, revealed the National Electronic Power Regulatory Authority (NEPRA) report.

The progress report of the power distribution companies including K-Electric was released by the NEPRA, indicating nine distribution companies including K-Electric failed to achieve 100pc recovery.

The line losses and low recoveries caused a loss of Rs403 bln to the national kitty, the report said. The report highlighted that the companies did not buy the electricity as per the assigned quota.

The companies carrying out loadshedding ‘deliberately’ as they are not buying electricity as per their quotas, the report said.