ISLAMABAD, May 14: The National Electric Power Regulatory Authority (Nepra) on Tuesday approved an eight paisa per unit increase in electricity rates as interim relief to cash-starved Wapda.

Sources told Dawn that while approving the increase, the authority also admitted for public hearing a Wapda request seeking 88 paisa per unit increase.

The new rates would be applicable with immediate effect on all consumer categories, including residential, industrial, agricultural, commercial and bulk consumers.

The increase would be notified along with a 4.5 paisa per unit increase approved by Nepra last month under fuel-based automatic adjustment but its notification was withheld on the directive of President Gen Pervez Musharraf due to referendum. The cumulative increase would thus come to 12.5 paisa per unit with immediate effect.

The interim increase was granted to Wapda on the request of the Ministry of Water and Power following a series of behind-the-scene consultations among donors, chief executive secretariat and finance, water and power ministries and cabinet division, besides Nepra and Wapda.

No official announcement to this effect has so far been made by Nepra.

Dawn contacted two members of the regulatory authority who refused to talk except that an advertisement would be released to the press on Thursday.

Nepra would now start public hearing of the Wapda petition seeking 88 paisa per unit increase within 15 days.

The interim raise has been granted on the plea that hike in Wapda’s fuel bill and inflation required increase in base electricity tariff to reduce the additional financial burden on Wapda to allow it to meet financial targets under the World Bank covenants.