Electricity prices Hike by 205% today

 

The National Electric Power Regulatory Authority (NEPRA) will hear the CPPA's request for an increase of Rs 7.96 per unit on June 27.

The CPPA has requested an increase in the monthly fuel price adjustment for May. In this regard, the petition states that 8.80% electricity was generated from furnace oil in May. Furnace oil generated electricity at Rs 33.67 per unit.

Two days ago, NEPRA had approved an increase of Rs 1.55 per unit in the price of electricity in the case of quarterly adjustment, whereas a day earlier, in the case of quarterly adjustment, the price of electricity had been approved at 42 paisa per unit. 

The government approved the withdrawal of Rs5 per unit electricity subsidy with effect from June that former prime minister Imran Khan had given in February. With the latest approval, electricity prices would cumulatively jump by a whopping Rs12.91 per unit or 108% against March prices benchmark. This will put an additional Rs1.45 trillion burden on the consumers every year. 

The ECC approved the implementation of the Rs7.91 per unit increase in three phases. The first phase of Rs3.50 per unit will take effect from July, the second, also of Rs3.50 per unit, from August and third of nearly Rs1 per unit from the following month, according to the decision. 

The summary will today (Tuesday) be placed before the federal cabinet to seek its ratification for Rs7.91 per unit increase,” Finance Minister Miftah Ismail said 

The ECC took these decisions on the day the IMF, for the first time, gave its reaction to Friday’s budget. In a statement, the IMF found the proposed budget short of expectations.

“Our preliminary estimate is that additional measures will be needed to strengthen the budget and bring it in line with key programme objectives”, IMF Resident Representative to Islamabad, Esther Perez told.