CPPA seeks Rs5/unit hike in basic power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) will take up the Central Power Purchasing Agency’s (CPPA) petition seeking Rs5 per unit hike in basic power tariff, on May 23.

The electric power regulator will decide on the Central Power Purchasing Agency, which is seeking a hike in the base tariff for the FY2024-25.

The increase will put an extra burden of Rs310 billion on the power consumers. Pakistan is currently negotiating with the International Monetary Fund (IMF) for a fresh loan programme.

According to sources, the international lender has asked Islamabad to further jack up the power and gas prices.

Read more: IMF ‘demands’ further increase in electricity prices

The IMF has expressed concern over the failure to achieve the targets, and the power sector’s circular debt is expected to reach Rs 2500 billion by the end of the current financial year. The Ministry of Energy has been unable to control the circular debt, sources said.

The IMF has also asked the Ministry of Energy to share a plan to increase the power and gas tariffs in the next financial year.

It is worth noting that the power sector’s circular debt was supposed to be controlled at Rs 2310 billion by the end of the current financial year, but it will exceed the target by Rs 150 billion by June.