The CPPA has recommended the increase under the fuel price adjustment of April.
Islamabad (Pakistan Point News – 20th May, 2019) The Central Power Purchasing Agency (CPPA) has once again recommended increasing power tariff.
The CPPA has recommended an increase of Rs0.57 per unit.
Details suggest that CPPA has forwarded the request to National Electric Power Regulatory Authority (NEPRA) under the fuel price adjustment of April.
The NEPRA will hear the request on May 28.
The electricity prices will be increased following Nepra’s approval.
The Energy Ministry had also sent a summary to Nepra recommending an increase of Rs2 per unit in the power tariff.
The government had earlier increased the electricity prices in April by Rs0.81 per unit on account of fuel price adjustment for the month of February.
It will already put a burden of Rs 3.15 billion on consumers.
Meanwhile, Pakistan and the International Monetary Fund (IMF) have reached an agreement under which the Fund would provide $6 billion Extended Fund Facility over the period of three years.
The power tariff is likely to be increased in view of this IMF deal.
Sources said that the government has agreed to increase the electricity tariff with the IMF. Electricity prices are likely to go up by Rs2.60 per unit.
The electricity prices will be increased in two stages. In the first stage, power tariff will be increased by Rs1.30 per unit from July 1. In the second stage, the power tariff will be increased by another Rs1.30 per unit from September.
This would reduce the burden on government to provide Rs200 billion subsidy to electricity consumers.
With the increase in tariff, the electricity prices will increase from Rs12.98 per unit to Rs15.58 per unit.
The government has also assured the IMF to reduce the circular debt by curbing line losses, electricity theft and improving distribution.
