Friday October 15, 2021

Rs 1.68 Per Unit Increase In Power Tariff Approved

ISLAMABAD: The federal government on Friday has approved an increase in the power tariff by Rs 1.68 per unit.

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 Rs 1.68 per unit.

Earlier, the National Electric Power Regulatory Authority (NEPRA) had increased the power tariff by Rs 1.95 per unit on account of the fuel cost adjustment (FCA) for August 2021.

According to a notification issued in this regard, the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs 2.7 per unit.

It was clarified that the FCA for August 2021 will be charged with the bill of October 2021, which will be paid by all consumer categories of distribution companies, except for lifeline and K-Electric consumers.

On the other hand, Minister for Energy Hammad Azhar says the government has allowed NEPRA to increase electricity tariff by 1.39 rupees per unit from the next month.

Addressing a news conference along with Minister of State for Information and Broadcasting Farrukh Habib in Islamabad on Friday, he said NEPRA had recommended an increase of 3.5 rupees per unit in March.  

The Energy Minister said 46 percent of domestic consumers using less than 200 units will not be affected by this increase. He said the raise in tariff will also not have any impact on industrial package.

He said the government had to increase the electricity tariff because of the costly power houses installed by the last government.

The Minister said the government has been making efforts to reduce circular debt.

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