Concerns are raised by a potential increase in electricity rates of Rs4.66 per unit

ISLAMABAD: In a potential blow to the public’s finances, there are signs pointing to a substantial increase in electricity tariffs, set to spike by Rs4.66 per unit.

Insider information indicates that the Central Power Purchasing Agency (CPPA) has formally approached the National Electric Power Regulatory Authority (NEPRA) to seek approval for this significant tariff hike. NEPRA is scheduled to deliberate on this matter during a hearing scheduled for tomorrow (December 27).

This proposed escalation, attributed to the monthly fuel adjustment for November, follows recent hikes in electricity tariffs. If sanctioned by NEPRA, this move is anticipated to impose an additional financial burden of Rs40 billion on consumers.

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The repercussions of such a considerable increase in electricity prices are expected to echo through households, impacting the general public. This tariff hike is poised to strain household budgets, adding challenges for citizens already navigating economic uncertainties.

It is noteworthy that consumers of K-Electric will be exempt from this impending hike, offering some relief to a segment of the population.

Read More: Rates for electricity will increase by Rs 4.66 per unit

As NEPRA gears up for a crucial decision on December 27, the public eagerly awaits the outcome, mindful of the potential consequences on their daily lives and financial stability.

It’s essential to highlight that despite the abnormal increase in the base electricity tariff and the well-publicized anti-theft efforts, NEPRA has struggled to curb the power sector’s circular debt. The losses of distribution companies have increased by 13.47 percent and 26 percent, respectively, during July to October 2023. This underscores the persistent challenges facing the power sector despite tariff adjustments and ongoing initiatives.