The National Electric Power Regulatory Authority (NEPRA) Thursday raised the basic power tariff by Rs7.9078/kWh for the next fiscal year 2022-23. The decision has been taken in line with the International Monetary Fund’s demands and the power distribution companies’ requests. Currently, the basic power tariff is Rs16.91 per unit and with an increase of Rs7.9078 per unit, it will be more than Rs24 per unit. The NEPRA cited an increase in fuel prices, capacity cost and the impact of the devaluation of the Pakistani rupee as reasons behind the significant increase in power tariff. According to a statement issued by the regulatory authority, the tariff has been determined for the fiscal year 2022-23. The statement further mentioned that: n The energy purchase price was projected as Rs 1,152 billion n Capacity charges including National Transmission and Dispatch Company (NTDC) and high-voltage, direct current (HVDC) electric power transmission cost is projected as Rs 1,366 billion. n The total revenue requirement of XWDISCOs including DISCOs margin and prior year adjustment (PYA) is projected as Rs 2,805 billion with projected sales of 113,001 GWh. n MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO and TESCO have been allowed an investment of around Rs406 billion for their distribution investment programme for the five years. XWDISCOs allowed transmission and distribution (T&D losses have been reduced from 13.46% to 11.70% for the FY23. “The determined tariffs have been intimated to the federal government and the uniform tariff so determined by NEPRA after incorporating the amount of subsidy/surcharges, intimated by the Government of Pakistan, is forwarded for notification,” the statement read. Last week, Minister of State for Petroleum Musadiq Malik had warned that an increase in electricity tariff would follow fuel price adjustment through withdrawal of subsidies. In addition, inflation during the month of May rose to a nearly two-and-a-half-year-high at 13.76 per cent, on the back of increasing transport and food prices. Inflation accelerated from 13.37pc year-on-year (YoY) in April, marking a 0.44pc month-on-month (MoM) rise in May.