The Central Power Purchasing Agency has formally petitioned the National Electric Power Regulatory Authority (NEPRA) to consider this hike, proposing a substantial increase from NEPRA's end.
ISLAMABAD: (UrduPoint/Pakistan Point Nes-Feb 20th, 2024) There's a looming possibility of electricity prices surging by Rs. 7.13 per unit, as per recent developments.
The Central Power Purchasing Agency has formally petitioned the National Electric Power Regulatory Authority (NEPRA) to consider this hike, proposing a substantial increase from NEPRA's end.
Scheduled for a hearing on February 23, the request aims to address monthly adjustments for January. Should the proposal find approval, consumers might face an additional financial burden amounting to Rs. 66.77 billion due to escalated electricity rates.
The reports suggest that the government is strategizing to shift some of the financial load onto residential consumers, particularly targeting those consuming over 400 units of electricity. This move comes as the IMF extends its nod of approval towards the Special Investment Facilitation Council's recommendations aimed at alleviating the industrial sector's subsidy burden and trimming down electricity bills for industrial units.
If these recommendations are implemented, industrial sectors could potentially witness up to a 29% reduction in electricity bills, coupled with a significant 91% decrease in subsidy burdens. Sources indicate that the IMF has tabled a plan to raise residential consumers' electricity bills in order to offset the industrial sector's burden.
Consequently, residential consumers might see a rise in their electricity bills, with anticipated savings of Rs. 222 billion earmarked for the industrial sector. However, consumers surpassing the 400-unit mark could face a substantial 41% increase or an additional Rs. 22 billion burden, attributed partly to fixed charges ranging from Rs. 50 to Rs. 3,000 in electricity bills.
The development came following a comprehensive review conducted during the February 2 meeting, aiming to mitigate the industrial sector's electricity bill burdens, settle the IMF loan, and terminate the energy sector's revolving loan. Virtual deliberations between Pakistani and IMF officials are slated for the upcoming week, with a keen focus on scrutinizing government projects worth Rs. 268 billion funded by the IMF's commercial loan, alongside initiatives aimed at discontinuing the energy sector's revolving loans worth Rs. 1.28 trillion.
