NEPRA Proposes Significant Power Tariff Increase

The National Electric Power Regulatory Authority (NEPRA) has proposed a significant hike in the power tariff, seeking an increase of Rs5.72 per unit for the fiscal year 2024-25. This proposal has been formally submitted to the Prime Minister’s Office for approval, marking a substantial change in the cost of electricity.

According to NEPRA, this latest increase in the basic power tariff is set to take effect from July 1, 2024. If approved, the per unit cost of electricity will rise from Rs29.76 to Rs35.5, a notable jump that could have widespread economic implications.

The ultimate decision on this proposal rests with the federal cabinet. The cabinet members will have to deliberate on whether to implement the proposed increase in a single adjustment or in phased increments. This decision is crucial as it will determine how the increased costs will be distributed over time.

It is important to highlight that current power tariffs are already considered to be beyond the financial reach of many ordinary citizens. This situation has led to a growing trend where more and more people are opting to install solar panels as an alternative to traditional electricity sources. In response to this trend, the government has been actively encouraging the public to switch to green energy solutions, providing support for solar energy adoption.

The proposed tariff increase by NEPRA underscores the ongoing challenges in the energy sector and raises important questions about affordability and the future direction of energy policy in the country. The decision by the federal cabinet will be closely watched, as it will have significant repercussions for consumers and the broader economy.

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