On Wednesday, the National Electric Power Regulatory Authority (NEPRA) was informed by the Power Division that despite a substantial increase in the base electricity tariff, consumers could expect lower bills compared to June. The federal government has proposed a Rs5.72 per unit — or 19.2 per cent — increase in the base tariff.
During a public hearing presided over by NEPRA Chairman Waseem Mukhtar, the Power Division requested the implementation of a uniform tariff for consumers of distribution companies and K-Electric. The Power Division officials explained that the new price calculation was based on a dollar exchange rate of Rs300, resulting in a 38 paisa per unit increase in capacity payments from the previous year.
A significant aspect of the proposal is the subsidy provision for domestic consumers, amounting to Rs490 billion. The officials highlighted that 86pc of domestic consumers would receive relief ranging from Rs4 to Rs7 per unit. Additionally, a cross subsidy of Rs730 billion would be provided to consumers of distribution companies.
Chairman Mukhtar questioned how bills could decrease if the tariff was increasing. The Power Division clarified that the June adjustments, which would conclude in July, played a crucial role. They acknowledged public concerns about rising bills but assured that there would be no major hike, describing the situation as a tariff reset rather than a straightforward increase.
The officials reiterated that following the tariff adjustment, electricity bills for consumers would indeed be lower than those in June. NEPRA has reserved its verdict following the completion of the hearing, leaving the final decision pending.