While criticizing the government’s decision to make another raise in electricity tariff, the PIAF Chairman Faheemur Rehman Saigol has urged the National Electric Power Regulatory Authority to reverse the proposed jump in power charges, as it has notified an additional fuel cost adjustment of Rs3.33 per unit for May after a massive base tariff hike a day earlier, putting an additional burden of least Rs580 billion annually.
In a statement issued here on Sunday, the PIAF chairman said the government’s decision to increase the electricity tariff is anti-industry, and the PIAF strongly condemns the government’s move and calls on it to rescind it. He urged the power ministry to identify system constraints and communicate targets to all concerned departments in order to launch a wartime effort to upgrade the transmission system.
Faheem Saigol said that move would further burden the financially strained trade and industry, as this adjustment of Rs.3.3287/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers. The electric shock comes a day after the government approved up to 51% or Rs7.12 increase in the per-unit price of electricity from July. After adding the cost of losses and distribution margins, the average tariff rises to Rs35.50 per unit. He said the real, applicable average national tariff would now be between Rs65 and Rs72 per unit after including surcharges, taxes, duties, and levies, as well as monthly and quarterly adjustments.
As many as 32.5 million consumers would pay an additional amount of at least Rs580 billion in this fiscal year which is over and above the existing cost of electricity. He believed such an increase in tariff was due to the mismanagement and wrong energy policies of past three decades. On June 14, Nepra already announced almost a 20pc (Rs5.72 per unit) increase in the uniform national tariff to ensure about Rs3.8 trillion in funds to the 10 Discos during the fiscal year 2024-25. All other consumer categories — commercial, general services, industrial and bulk — would be subjected to Rs1,250 per kilowatt fixed capacity charge compared to the existing rate of Rs400-500 per kilowatt.