ISLAMABAD: Caretaker Prime Minister Anwarul Haque Kakar has instructed the officials from Power Division to devise practical and contemporary solutions for the reduction of electricity rates. During an emergency meeting convened to discuss the surge in power tariffs and bills, the Prime Minister emphasized the importance of conveying relief measures related to electricity charges to the public, while avoiding straining the national finances.
PM Kakar highlighted the public’s apprehensions about the escalating electricity costs and stressed the need for conservation and curbing theft of electricity. He urged the relevant authorities to take actions aimed at providing the maximum possible relief to the citizens.
In a presentation on behalf of the Ministry of Water and Power, officials explained that the electricity tariff is determined by NEPRA (National Electric Power Regulatory Authority), and prices fluctuate based on the Consumer Price Index. Additionally, power prices are influenced by the Karachi Interbank Offered Rate (KIBOR) and adjustments in fuel prices. The officials informed the Prime Minister that the cost of imported coal ranged from Rs 51,000 to Rs 61,000 per metric ton.
The officials projected that an amount of two trillion rupees will need to be allocated solely for capacity payments in the upcoming year. They further pointed out that the most significant increase in power tariffs was imposed on consumers utilizing more than 400 units.
According to the Power Division, there will be no tariff increase for 63.5 percent of domestic consumers. Tariffs for 31.6 percent of domestic consumers will see a rise of Rs 3 to Rs 6.5 per unit, and only 4.9 percent of domestic consumers will experience a tariff hike of Rs 7.5 per unit. On average, domestic consumers can expect a tariff rise of Rs 3.82, while consumers in other categories will encounter an increase of Rs 7.5 per unit. The highest electricity tariff recorded was Rs 31.02 per unit in July 2022, which climbed to 33.89 rupees per unit in August 2023.
Meanwhile, Caretaker Minister for Information and Broadcasting Murtaza Solangi stated that a press release concerning a significant meeting focusing on power tariffs would soon be shared with the media. He conveyed that this meeting, addressing electricity pricing and associated matters, was chaired by Caretaker Prime Minister Anwaar-ul-Haq Kakar. Solangi had previously announced that the Prime Minister had convened a high-level meeting to address concerns related to electricity pricing, with participation from all stakeholders within the power sector.
