ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Monday allowed the application of Rs 3.39 per unit additional surcharge to be recovered from the consumers of WAPDA distribution companies (DISCOs) and K-Electric for March till June 2023.

The additional surcharge of Rs.3.39 per unit shall be reduced to Rs.1 per unit to cover the additional markup charges of Pakistan Holding Limited (PHL) loans, thus the total surcharge shall become Rs. 1.43 per unit for the FY 2023-24, said a notification issued here.

The power regulator allowed the DISCOs to receive additional Rs1.43 per unit from July, 2023 to June 2024. Currently, 43 paisa per unit additional surcharge is being received from the consumers.

The total additional surcharge will surge to Rs 3.82 per unit with the addition of Rs 3.39 per unit. The rate for consumers using 300-700 units and commercial consumers has been raised by Rs3.82 per unit.

Earlier, the federal government imposed an additional surcharge of Rs3.82 per unit on electricity, in another desperate move for the revival of the IMF stalled loan.

The recent move is said to add citizens’ woes but it will generate Rs335 billion more in revenue over the next fiscal year to tackle the debt and liabilities of the power sector.

Economic Coordination Committee (ECC), presided over by Finance Minister Ishaq Dar allowed imposing additional power surcharge.

In a statement, Ministry of Finance said Economic Coordination Committee gave assent to the proposal regarding the enhancement of surcharge for the financial year 2024 to cover federal government obligations towards power producers.

The recent development comes a week after Finance Minister Ishaq Dar refused to accept the demand tabled by IMF. The US-based lender demanded a total surcharge of Rs3.82 per unit to eliminate circular debt accumulation.

Meanwhile, the monetary policy committee of the country’s central bank is due today as the government is set to raise the key interest rate.