ISLAMABAD, Nov 13: The military government has put on hold a 6.49 paisa per unit increase in electricity tariff for announcement by the elected government, authentic sources told Dawn on Wednesday.

The National Electric Power Regulatory Authority (Nepra) had approved 6.49 paisa per unit increase in power tariff under automatic fuel adjustment formula on Oct 17 and forwarded to the government for notification the same day, the Nepra sources confirmed.

Under the Nepra Act of 1997, the federal government is required to either return the tariff determination to Nepra for review or notify new rates in the official gazette for implementation.

This time the government neither notified the increased rates nor informed the Nepra as to why it was holding back formal notification although 30 days have passed since the Nepra determination, said a senior Nepra official.

Under the automatic fuel adjustment formula, Nepra is required to revise Wapda and KESC tariff on quarterly basis to pass on variation in furnace oil prices to the consumers.

The Nepra had determined on Oct 17 that Wapda companies required 6.49 paisa per unit increase to mitigate the additional impact of increase in furnace oil.

An official in the water and power ministry admitted that it had received Nepra determination in the mid of October but the chief executive secretariat had barred the ministry from notification to avoid public outcry in the last days of military government.

The power rates have increased between 20 to 60 per cent for various consumer groups since military take over in October 1999. This was in addition to a phased withdrawal of 30 per cent subsidy provided by former prime minister Nawaz Sharif for domestic consumers following resolution of tariff dispute with independent power producers (IPPs) in 1998.

This increase also does not include the imposition of 15 per cent general sales tax on electricity being collected from all consumers except small domestic section.

There were a total of 16 tariff revisions excluding withdrawal of subsidy and GST levy approved by the Nepra since March 1999 and 12 power tariff revisions after October 1999.

These also included tariff revisions because of automatic fuel adjustments. The last tariff increase of an average 40 paisa per unit was made in August this year.