ISLAMABAD: The federal government on Friday has approved an increase in the power tariff by Rs1.68 per unit.
Sources added that the cabinet has approved the increase in power tariff through a circulation summary.
Considering the summary sent by the Ministry of Energy for approval, the government increased electricity prices by Rs1.68 per unit.
In a bid to remain in IMF programme, the government had sought the federal cabinet’s approval to increase electricity tariff by Rs1.68 per unit or nearly 14%.
According to the summary, the maximum per-unit electricity price is also proposed at Rs24.33 per unit for domestic consumers.
This will result in the reduction of electricity subsidies by Rs72 billion during the remaining period of this fiscal year.
Earlier, the National Electric Power Regulatory Authority (NEPRA) had increased the power tariff by Rs1.95 per unit. The increase is on account of the fuel cost adjustment (FCA) for August 2021.
According to a notification, the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs2.7 per unit.
It was clarified that the FCA for August 2021 will be charged with the bill of October 2021. All consumer categories of distribution companies will pay this, except for lifeline and K-Electric consumers.
