Govt to raise power tariff by Rs3.9 per unit

Islamabad – Staff Reporter:

In another development, the government is all set to increase power tariff by Rs3.4-3.9 per unit under the head of FCA (Fuel Charges Adjustment) for the consumers utilising 300 units a month and private agriculture consumers.

The Power Division (PD) to this effect has sent a summary to ECC that meets today (Wednesday), seeking approval of passing the net increase of Rs3.4-3.9 per unit in electricity tariff with impact of Rs17 billion under the head of FCA for the period starting from November 2019 to June 2020 arguing it is necessary for making IMF programme 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 said. “This increase will be in addition to FCA of January 2021 and recent increase of Rs1.95 per unit in base tariff.”

Under the law, fuel cost for power generation is a pass through item and fuel charges are passed on to consumers on monthly basis, but the government had banned the increase in tariff because of first wave of COVID 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 life line 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.