The National Electric Power Regulatory Authority (Nepra) has approved the federal government’s request to increase the base power tariff by Rs7.91 per unit, seemingly fulfilling another IMF conditionality.
After the federal government issues a notification, the new raise will become effective.
The government’s request to charge end-consumers of all power distribution companies, including K-Electric, a uniform tariff and collect the recently increased base power tariff of Rs7.91 per unit from consumers in the Financial Year 2022–23 was approved, Nepra said in an announcement of its decision, which was previously reserved.
Early this month, the government raised the base power rate by Rs7.91 per unit in an effort to restart the Extended Fund Facility with the IMF (EFF).
With the increase, power distribution companies will be able to charge consumers an additional Rs. 893.83 billion during the current fiscal year. However, this increased tariff would be recovered over three phases, beginning in October 2022 and continuing through July 2022.
The government had suggested in its application that the base power tariff be raised in three phases, with a Rs3.50 per unit increase in July, Rs3.50 in August, and a Rs0.91 per unit increase from October 2022, for all distribution companies (DISCOs), including K-Electric.
