The Federal Cabinet has accorded approval for a substantial increase in the base power tariff to address financial crisis in energy sector.
The decision comes on the heels of the National Electric Power Regulatory Authority (Nepra) raising the national average tariff by nearly Rs5 last week.
The approved tariff hike, which could be up to Rs7.5 per unit, is set to take effect retrospectively from July 1.
The regulator’s proposal sought price hikes in the uniform tariff for all power distribution companies (Discos), including K-Electric, said a notification issued by the power ministry.
To provide some relief to vulnerable consumers, lifeline users who consume up to 100kW per month and the protected segment, consuming up to 200kW, will be exempted from the tariff increase.
Hence, lifeline consumers using up to 50kW will continue to pay Rs3.95 per unit, while those using between 51-100kW will pay Rs7.74 per unit.
The base tariff for protected consumers, using between 1-100kW per month, will remain unchanged at Rs7.74 per unit. For protected users consuming between 101-200kW, the rate will also remain the same at Rs10.06 per unit.
In contrast, unprotected residential consumers will face significant tariff hikes. Users consuming up to 100kW per month will experience a base tariff increase of Rs3 per unit, resulting in a new rate of Rs16.48 per unit. Those consuming between 101-200kW will pay Rs22.95 per unit after a price increase of Rs4.
The tariff hikes follow a progressive pattern for higher consumption levels.
For consumers using between 201-300kW, a price hike of Rs5 per unit will bring the rate to Rs27.14 per unit. Meanwhile, the 301-400kW category will see an increase of Rs6.50 per unit, resulting in a new tariff of Rs32.30 per unit.
Consumers with higher consumption rates will experience even larger tariff hikes.
For those using between 401-500kW, the price has been raised by Rs7.5 per unit, taking the new rate to Rs35.24 per unit.
Users consuming between 501-600kW will pay Rs36.66 per unit after an equivalent hike, while the 601-700kW category will experience a Rs7.50 increase, reaching Rs37.8 per unit. Those using more than 700kW will face the highest hike, with the new tariff reaching Rs42.72 per unit. Once the 18% sales tax is included, the maximum power tariff for consumers in this category will reach Rs50.41/kWh.
Commercial consumers are also impacted by the tariff revisions. For those in the A-2 category with a “peak load requirement of less than 5kW,” the base power tariff has been raised by Rs7.50 per unit, reaching Rs37.75. On the other hand, “regular” consumers in the A-2 category with a “peak load requirement exceeding 5kW” will now pay Rs39.43 per unit after an equivalent tariff hike.
