ISLAMABAD, May 10: The National Electric Power Regulatory Authority (Nepra) has announced an increase in electricity tariff keeping in view the poor financial health of Wapda and the KESC.
According to a press release issued here on Saturday, Nepra had determined an increase of 14.35 paisa per kwh for agricultural tubewells and domestic consumers of Wapda and 20 paisa per kwh for the KESC, but the federal government has approved an increase of seven paisa per kwh and nine paisa per kwh, respectively.
According to a decision of the prime minister, the difference of amount which is not to be passed on to consumers will be picked up by the federal government.
Agricultural tubewells will be exempted from the burden of increased tariff and Wapda/ KESC have been directed not to pass on increase to this sector.
This relief will impose a financial burden of nearly Rs1 billion on the federal government.
Residential consumers using up to 50 units will be exempted from this increase.
The prime minister has decided to provide relief to the public by passing on only a partial increase in electricity tariff determined by Nepra for residential consumers and by not passing on the increase determined for agricultural consumers in case of both Wapda and the KESC.
In accordance with the Automatic Tariff Adjustment (ATA) formula in vogue for determination of variations in electricity tariffs, Nepra had determined an increase in electricity tariff for residential and agricultural consumers of Wapda and the KESC in order to compensate the utilities for the price hike in furnace oil during the quarter of January-March 2003.
Minister for water and power, Aftab Ahmed Khan Sherpao has convened a meeting on May 12 (Monday) to discuss measures to reduce electricity tariff as a long-term objective.—APP
