Govt plans to increase power tariff by Rs3.9 per unit: report

The Power Division argues that the raise is necessary for making the IMF program operational

Web Desk

March 17, 2021

The government had banned the increase in tariff because of the first wave of coronavirus from November 2019 to June 2020. File photo

The government plans to increase the power tariff by Rs3.4-3.9 per unit for the consumers utilising 300 units a month.
The development comes under the head of FCA (Fuel Charges Adjustment).
The Power Division (PD) has sent a summary to Economic Coordination Committee (ECC) that is scheduled to meet today (Wednesday).

ISLAMABAD: The government plans to increase power tariff by Rs3.4-3.9 per unit for the consumers utilising 300 units a month and private agriculture consumers, The News reported on Wednesday.

The development comes under the head of FCA (Fuel Charges Adjustment).

To this effect, the Power Division (PD) has sent a summary to Economic Coordination Committee (ECC) that is scheduled to meet today (Wednesday).

It will seek approval of passing the net increase of Rs3.4-3.9 per unit in electricity tariff with an impact of Rs17 billion for the period starting from November 2019 to June 2020.

The PD argued that the raise is necessary for making the IMF program operational.

“The financial burden amounting to Rs17 billion would be recovered from the consumers in the months of March and April 2021,” a senior official privy to the development told The News.

“This increase will be in addition to FCA of January 2021 and the recent increase of Rs1.95 per unit in the base tariff.”

Fuel cost for power generation is a pass-through item, and fuel charges are passed on to consumers on monthly basis under the law.

The government had banned the increase in tariff because of the first wave of coronavirus from November 2019 to June 2020.

However, the PTI government has decided to pass the impact of Rs17 billion to those consumers who are enjoying the subsidy such as the consumers who consume 300 units a month and agriculture units.

However, lifeline consumers will not be affected. The financial burden of Rs17 billion will be passed on to consumers in the billing of March and April 2021.