Electricity Prices To Go Up By 95 Paisa By Feb 1

Web Desk — To meet commitments made with the international lending agencies, the government has decided to increase base electricity rates by up to 95 paisa per unit with effect from February 1.

The decision will result in a reduction of Rs20 billion in power sector subsidies and an increase of Rs18.75 per unit for all distribution companies, including K-Electric, representing an average increase of about 53 paisa per unit.

It is the second phase of the “Retargeting of Power Sector Subsidies” that the government committed with the World Bank and the International Monetary Fund. On December 17, the ECC approved the second phase of subsidy reduction.

Tariffs will increase by 8 paisa to 95 paisa per unit for various categories of unprotected consumers using 1 to 700 units per month. This will be on top of removing the one-slab discount. Further additions would include sales tax, fuel price adjustments, quarterly adjustments, financing cost surcharges, etc.

Unprotected consumers using 1-100 units will see the base tariff increase by eight paisa per unit to Rs9.50, followed by 18 paisa per unit for 101-200 units to Rs10.36 and 48 paisa per unit to Rs12.62 for 201-300 units.

All higher categories would see an increase of 95 paisa per unit. Therefore, those consuming between 301 and 400 units per month will now be charged Rs15.75 per unit instead of Rs14.78 currently.