Pakistan govt raises electricity base tariff by up to 51%

Pakistan’s National Electric Power Regulatory Authority (Nepra) has hiked the electricity base tariff by up to 51% per unit for residential customers.

The new rates, which were in line with the government’s demands, were notified on Thursday, and will apply retrospectively from July 1.

The tariff for lifeline consumers — who consistently use less than 100 units a month — will remain unchanged. They will be charged Rs3.95 per unit if their consumption is between 1-50 units and Rs7.74 per unit if it’s between 51-100 units.

Meanwhile, the base tariff for protected consumers — those who use up to 200 units every month for six months or more — has been raised by up to Rs14.16 per unit. This is an increase of 51% from last year’s base tariff.

However, the hike in tariff has been deferred for consumers using up to 200 units till October 2024 amid public outcry over high electricity prices.

This three-month relief will be funded by a subsidy financed through a Rs50 billion reduction in the Public Sector Development Program (PSDP).

Meanwhile, the base tariff for consumers using between 201-700 units will now be up to Rs7.12 per unit or 43.1% more expensive.

Nepra also notified the application of fixed charges at 25% of whichever is higher — the sanctioned load or actual Maximum Demand Indicator value for the month.