Bad news for inflation-hit masses as electricity price increased by Rs3.76 per unit

The National Electric Power Regulatory Authority (NEPRA) on Saturday hiked electricity prices by Rs3.76 per unit, adding another heavy burden to people already struggling to make ends meet amid rising inflation.

The decision will put an additional burden of Rs46.61 billion on consumers.

The power watchdog also imposed "additional electricity charges" for consumers from June to August 2024. This means extra charges of Rs0.93/unit will be applied to electricity bills during these months.

The tariff hike will also apply to K-Electric consumers.

NEPRA reserved its decision on May 31 after the Central Power Purchasing Agency (CPPA) requested to increase electricity prices by Rs3.49 per unit due to fuel cost adjustments for April.

During the hearing, CPPA officials pointed out that the industry could not utilise gas-powered plants for electricity consumption in April due to improved weather conditions.

The federal government announced a new electricity subsidy on Friday for consumers who use up to 200 units per month.

Nearly 20 million power consumers will benefit from the scheme, with the government providing relief of at least Rs160 billion until the end of the current fiscal year (2023-24). 

However, consumers who use more units will pay an additional tariff starting from July 1.