In the current financial year, the government plans to collect an additional Rs721 billion from electricity consumers. The framework to increase the electricity tariff & reduce the revolving credit has been shared with the IMF.
According to the prescribed framework, the electricity price will be increased by Rs1.25 per unit till September, which will help in the collection of Rs721 billion in the current financial year. A revenue of Rs39 billion is likely to be obtained by jacking up the quarterly adjustment of the electricity tariff.
According to sources, electricity prices would hike by Rs4.37 per unit due to fuel adjustment during the time period of September to December. By December, Rs122 billion will be obtained by increasing the price of electricity in the context of fuel adjustment. On the other hand, the annual rebasing will result in Rs560 billion by increasing the price of electricity by Rs5.75.
Media reports suggest that the received money will be used to reduce the revolving debt of the energy sector. The aim is to reduce the revolving credit of the power sector to Rs2,130 billion by the end of the current financial year. In June 2023, the revolving credit of the power sector was around Rs2700 billion.
