In a move that is expected to have far-reaching implications for consumers and the economy, the federal government has approved a substantial increase in electricity prices for commercial, agricultural, and large consumers. The new tariffs, which come into effect in July, aim to address the rising costs of power generation and distribution.
Commercial consumers will bear the brunt of the hike, with a staggering Rs 8.04 per unit increase, bringing the new rate to Rs 77.15 per unit. Agricultural consumers will see a significant rise of Rs 6.62 per unit, resulting in a new rate of Rs 46.83 per unit. Large consumers will experience an increase of Rs 5.51 per unit, making their new rate Rs 59.96 per unit.
The Power Division has informed the National Electric Power Regulatory Authority (NEPRA) of the Federal Cabinet’s decision. While the government has maintained the existing basic electricity tariff for industrial consumers at Rs 30 per unit, other categories will see significant hikes. General services will experience a rise of Rs 6.98 per unit, making the new tariff Rs 61.03 per unit.
Household electricity consumers will also be affected, with a minimum rate set at Rs 23.73 per unit. Incremental rates will apply for different levels of electricity consumption, ranging up to Rs 41.69 per unit for usage exceeding 700 units. Agricultural consumers, however, will receive a reduced rate capped at Rs 22.85 per unit.
This significant hike in electricity tariffs is expected to have a ripple effect on the economy, potentially impacting inflation and consumer spending. While the government aims to address the financial sustainability of the power sector, consumers and businesses may need to adjust their budgets to accommodate the increased costs.
