National Electric Power Regulatory Authority (NEPRA) approved a Rs4.83 per litre increase in energy costs for K-Electric customers on Friday.
The power price for K-Electric has been raised by Rs4.83 per unit under fuel adjustment costs for the month of March, against demand of Rs5.27 per unit, according to a notification published by the NEPRA.
The NEPRA said it held a public hearing on April 27 in response to a request to raise electricity prices, and that consent was given to increase the power tariff for March, which will be charged in June.
After talks with the International Monetary Fund (IMF) for the delivery of a US$1 billion tranche earlier in the day, the federal government agreed to raise energy tariffs by Rs7 and privatize lucrative public-owned DISCOs.
According to individuals familiar with the situation, the Rs 7 increase in electricity costs will include a rise in the basic tariff as well as fuel adjustment charges. “The increase in power tariffs will take effect on July 1,” they stated.
The IMF has also voiced alarm over the Rs2,600 billion power pricing, recommending that the government privatize the profitable public DISCOs quickly. It has also been suggested that DISCOs that are losing money be handed over to provinces.