The federal cabinet has announced a significant hike in electricity tariff for residential consumers using between 100 and 500 units per month.
The new base rate is set at Rs 48.84 per unit, increasing to Rs 57.63 per unit with sales tax. After including other adjustments and taxes, the highest tariff will exceed Rs 65 per unit.
According to the revised tariff, consumers using 1 to 100 units will pay Rs 23.59 per unit. Those consuming between 101 and 200 units will be charged Rs 30.07 per unit.
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For usage between 201 and 300 units, the rate will be Rs 34.26 per unit, and for 301 to 400 units, it will be Rs 39.15 per unit. The highest tariff of Rs 41.36 per unit applies to those using between 401 and 500 units.
This tariff increase comes against the backdrop of massive financial losses in Pakistan’s power sector. The National Electric Power Regulatory Authority (NEPRA) reported a loss of Rs 403 billion in the fiscal year 2022-23.
According to NEPRA’s progress report, nine power distribution companies, including K-Electric, failed to achieve full recovery of dues. These losses were mainly due to line losses and low recovery rates, resulting in substantial financial deficits for the national treasury.
