Basic electric tariff likely to reach up to Rs72 per unit

The National Power Regulatory Authority (NEPRA) has approved a Rs5.72 per unit power tariff hike nationwide to ensure Rs3.8 trillion in funding to distribution companies during the fiscal year 2024-25.

The increase will be effective from July 1, after the formal notification by the government. 

The average national base tariff, including for the K-Electric, would be Rs35.50 per unit for the next fiscal year against Rs27.78 for the current year. 

After the addition of an 18 percent general sales tax, the average tariff for the next year would jump to Rs42 per unit, excluding other taxes, duties, and surcharges.

An official said that the average tariff for the consumer is likely to go up to Rs65-72 per unit after the inclusion of surcharges, taxes, duties and levies without the inclusion of the monthly and quarterly adjustments in the tariff.

It would assist the power sector in ending the circular debt by collecting Rs485bn and strengthen the government in securing a deal for a fresh bailout programme from the IMF in July.

The hike would produce Rs3.8 trillion in revenue for 10 Discos in FY2024-25 against Rs3.28 trillion in the ongoing fiscal year.

Following an increase, the per unit tariff for domestic consumers will be much higher than the industrial sector.

A day earlier, Prime Minister Shehbaz Sharif announced to reduce power tarrif by Rs10.69 per unit for the industrial sector.