The recent decision by the National Electric Power Regulatory Authority (Nepra) to raise electricity prices has sent ripples of concern through Pakistan. As inflation weighs heavily on citizens, the additional burden of increased electricity rates during the holy month compounds their woes.
The backdrop for this surge lies in the recent hike in petrol prices. The government has now notified an increment of Rs2.75 per unit in electricity rates for all consumers nationwide, including those residing in Karachi. This adjustment falls under the second quarterly tariff mechanism, aimed at alleviating the mounting pressures power companies face.
However, not all consumers will be affected equally. Those who consume less than 100 monthly units are exempt from this rate surge. For the rest, the impact will be felt over the next three months, starting from April 2024. The total increase amounts to a staggering Rs85.2 billion, primarily driven by rising fuel costs and maintenance expenses within the power industry.
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To mitigate the impact on low-consumption households, lifeline customers have been spared from this tariff hike. It’s worth noting that earlier this year, in February, NEPRA had already raised electricity prices by Rs7.5 per unit as part of the fuel price adjustment.
As we enter April 2024, power distribution companies will calculate electricity bills based on the revised rates. For consumers, this means bracing for higher bills during the coming months. The challenge now lies in balancing the need for sustainable energy with the economic realities faced by citizens across Pakistan.
