Govt decides to increase power tariff by Rs2.8 per unit

The government has decided to further increase the electricity tariff by Rs2.8 per unit, under the Circular Debt Management Plan (CDMP). The decision has been taken to collect an additional Rs292 billion from consumers as per the conditions of the International Monetary Fund (IMF).

The tariff will go up from February to July this year, in two phases.

As per the sources of The Nation, the Cabinet Committee on Energy (CCOE), which met under the chairmanship of Federal Minister for Planning, Development, and Special Initiatives Asad Umar, was informed that the power sector circular debt has increased by Rs196b during the first six months (Jul-December) of the fiscal year 2021-22 as compared to the same period of the previous year and has increased to a record high of Rs2,476b.

The first rise, of at least 63 paisa, is anticipated to be implemented from this month, bringing in Rs85 billion for the government till June of next year.

However, because of the higher-than-expected currency devaluation, the Ministry of Energy has warned the cabinet committee that the rise might be as high as 75 paisa per unit. According to the decision, another hike of Rs2.17 per unit will be implemented in July, putting an additional cost of Rs207 billion on customers.