Another increase in electricity prices on the cards

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Friday reserved verdict on a petition filed by the Central Power Purchasing Agency (CPPA) seeking increase in the electricity tariff by Rs3.41 per unit on account of the monthly fuel adjustment (MFA) for May.

The proposed hike is expected to take effect from July 1, adding more burden on consumers who are struggling to cope with high inflation.

According to the CPPA, the production cost of electricity has risen to Rs9.12 per unit, with a total of 12.26 billion units generated last month.

The CPPA has been consistently seeking tariff hikes to offset the rising costs of fuel, which has put a significant strain on the power sector.

Earlier, the basic electricity tariff was increased from Rs7.91 per unit in the last fiscal year to Rs7.50 per unit.

It is pertinent to mention here that the new surge in electricity tariffs is expected to be implemented from July 1.

The proposed tariff hike has sparked concerns about the impact on the economy and the general public. With the cost of living already high, this increase is likely to further exacerbate the financial burden on households and businesses alike.

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The government has been under pressure to control inflation and reduce the cost of living, but this hike may undermine those efforts.

The NEPRA’s decision on the CPPA’s application will be closely watched, as it will have far-reaching implications for the power sector and the economy as a whole. The authority will need to balance the interests of the power generation companies with those of the consumers, who are already struggling to cope with high electricity prices.