Ongoing controversy over K-Electric’s exclusivity to supply electricity to the metropolis, the federal government has agreed up to Rs2.89 per unit hike in power tariff for the KE consumers with retrospective effect from September 1, it emerged on Monday.
The Power Division has notified the increase from Rs1.09 to Rs2.89 per unit which will be applicable from the previous month.
The National Electric Power Regulatory Authority (Nepra) had recommended the increase in tariff in December 2019 but its implementation was withheld by the government due to multiple reasons.
Nepra had determined an increase of Rs4.87 per unit or 44% in power tariff on account of previous years’ adjustments. The total revenue impact of the tariff hike of Rs4.87 per unit was nearly Rs106 billion.
The notification states, “In pursuance of sub-section (7) of section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the Federal Government is pleased to notify as under the adjustment in the approved tariff on account of quarterly adjustments w.e.f September 1, 2020 as determined and recommended by Nepra vide decision dated December 31, 2019 in respect of K-Electric Limited”.
“Recommended quarterly adjustment to the tune of Rs4.87 being the differential between the schedule of tariff recommended by Nepra for April-June 2019 and the schedule of tariff earlier recommended by Nepra and reflected in KE notified tariff be notified for each category of consumer to the extent of bringing K-Electric consumer-end tariff at par with what is currently in field for consumer of XDISCOs increase in rate of Rs1.09 to Rs2.89/kWh for various categories of consumers,” it added.
Any difference between the two rates be made available by way of subsidy which shall amount to Rs26 billion only.
The base tariff for the K-Electric was Rs11.22 per unit, which would be increased by up to Rs2.89 per unit following the notification.