The cost of production has increased many times, and the price will be paid by the consumer. Chairman Nepra
During the hearing on the government’s request to increase the price of electricity by 7 rupees (91 paisa per unit), Chairman Nepra said that the cost of production has increased many times, the cost of which will have to be paid by the consumer.
A hearing on the government’s request for a phased increase to make the basic electricity tariff uniform was held in Nepra, which was chaired by Chairman Nepra Tauseef H. Farooqui. At the hearing, Additional Secretary Power Division Mahfooz Bhatti, while giving a briefing, said that Nepra has approved an increase of Rs 7.91 per unit of electricity on June 4.
The Secretary Power Division said that we do not want to burden consumers simultaneously. Despite the phased increase, the government will provide a subsidy of Rs 220 billion on electricity tariffs, with the price increase imposing no additional burden on approximately half of all consumers.
According to the request for uniform tariff, since July, electricity will be increased by Rs 3 50 paise per unit. The basic tariff will be Rs 18 98 paise. Later, from September, the basic tariff will be increased to Rs.22 and 48 paisa per unit by an additional increase of Rs.350 paisa per unit, and in the third phase, by increasing the basic electricity tariff by 91 paisa per unit from October, the basic tariff will be Rs.23 and 39 paisa per unit. After the hearing, Nepra will send the decision to the federal government for notification.
During the hearing, the Power Division officials said that, after rebasing, the number of protected consumers will decrease. The government is giving a subsidy of 93 billion rupees to the agricultural sector. On which the Nepra officials said that the government should provide us with the subsidy statistics for each category.
Chairman Nepra said during the hearing that fuel prices are increasing in the global market. 3 years ago, imported coal was 50 dollars per ton. Today it is 400 dollars. Fuel costs have increased eight times. The dollar has also doubled against the rupee. He said that the production cost of electricity has increased 16 times. If the consumer will not pay this price, then who will?
Nepra Chairman Tauseef H. Farooqui further said that the situation has progressed much beyond our estimate. NEPRA has no power to control world prices or the dollar. We had predicted that the dollar would not go above 200 rupees, whereas the dollar has now gone above 222 rupees. He stated that, despite the tariff increase, fuel prices and quarterly adjustments would continue.
Later, on completion of the hearing, Nepra reserved the decision, which will be issued after a detailed examination of the data.
