Nepra on Friday increased electricity price up to Rs 1.68 per unit to reduce power subsidies.
The increase in electricity price will take effect from November 1, 2021. The increase will not be applicable to the consumers using up to 200 units per month.
An increase will put more burden of Rs 135 billion on consumers. NEPRA has decided to increase the price of electricity up to Rs 1.68 for domestic consumers.
It raised the power tariff by Rs 1.39 per unit for commercial and industrial consumers.
It fixed an electricty price of Rs 13.83 per unit for consumers using 300 units per month. For consumers using 700 units or more, Discos will charge the price of a unit of electricity at Rs. 24.33.
Customers using about 400 to 700 units will pay Rs 21.23 per unit.
Nepra had conducted a public hearing earlier.
Ministry of Energy had informed during the hearing, there will be no increase for consumers using 200 units per month. But, remaining domestic consumers will face an increase of Rs.1.68 per unit. Other consumers will pay Rs.1.39 per unit.
The same increase will apply to the consumers of K-Electric.
Under phase 1, Nepra had approved revision in tariff slabs and created some more slabs to reduce subsidy. It approved an increase in the limit for lifeline consumers up to 100 units against 50.
However, there are certain consumers, who get subsidies in the winter months despite using more than 300 units during summer.
The ultimate goal of the government is to allow targeted subsidies and recover the cost of electricity. In Phase-II and Phase-Ill, the government will reduce the subsidies further.
The industry remains competitive and is not overburdened. Phase-Il is under preparation. The energy ministry will present before Nepra for approval.
The energy ministry claimed around 45% of the domestic consumers are still getting subsidies. The government is providing a total net subsidy of around Rs.168 billion.