Govt likely to increase power tariff by Rs8 per unit from June 1

ISLAMABAD (92 News) - The government is likely to increase the power tariff by Rs8 per unit from June 1.

According to sources, the increase in the power rate will be made under the head of basic tariff. However, the decision will be made after the NEPRA decision on the applications of the 10 power distribution companies.

The NEPRA had completed the hearing of the applications of the power distribution companies with regard to their revenue needs. The decision on the applications is expected this week.

The Energy Ministry said that the Power Division would make the decision after the decision of the NEPRA.

Sources said that the government would make the decision on the targeted subsidy after the NEPRA decision. The power rate will be increased due to fuel prices, circular debt and company losses. The increase, however, is likely to be made phase-wise.

Currently the power unit is more than Rs16 per unit. After the decision of the Energy Division, its price could exceed Rs24 per unit.