Govt decides against tariff hike for protected consumers

After these changes the National Electric Power Regulatory Authority (Nepra) has postponed its public hearing scheduled earlier on July 8 to July 10. This meeting was scheduled to deliberate on an average rise of Rs5. Currently, the state and six units have an assessment rate of $72 per unit; thus, the new summary excluding protected consumers will be considered. The government wants to offset the Rs50 billion loss of revenue through subsidies as well as new and improved tariffs.

The decision to review the tariff hike decision has been made in continuation of the existing warning from different sectors regarding the urge of the public that has already led to violence against officials of distribution company. The proposed increase was even more steep for consumer with usage ranging from 100 to 200 units a month most of who are struggling financially.

The first tariff modification was directed to generate a lot of funds for ex-Wapda Distribution Companies and K-Elec as per the structural reform conditions of the IMF. Even though the government aims at shielding low-consuming customers, other groups will continue to receive significant hikes, such as the fixed capacity charges for greater consumption and the commercial clients. It now looks forward for moderation of the fiscal needs with regard to commitments under international financial obligations and moderation of public distension.