NEPRA Announces Electricity Rate Increase Amidst Consumer Concerns

Islamabad: The National Electric Power Regulatory Authority (NEPRA) has disclosed a tariff hike of Rs1.46 per unit, intensifying concerns for consumers grappling with elevated inflation and burgeoning utility bills. This adjustment, designated as a monthly fuel alteration, is scheduled to become effective in September, affecting electricity invoices in the forthcoming month.

NEPRA’s notification underscores that this price adjustment will not be applied to lifeline consumers and K-Electric patrons.

The announcement has elicited widespread dissatisfaction among citizens, who have organized protests nationwide in objection to inflated electricity bills and hefty taxation.

Protest demonstrations have materialized in various cities, including Karachi, Lahore, Islamabad, Peshawar, Quetta, Hyderabad, Okara, Jhang, Sadiqabad, and Malakand. Demonstrators have resorted to symbolic actions, including the burning of electricity bills, blockading highways, assaults on power company offices, and calls for government intervention.

Critics have reproached the government, asserting that it has fallen short of its commitment to provide affordable electricity to the populace. They have attributed this tariff increase to the government succumbing to the International Monetary Fund (IMF), which imposed stringent conditions on Pakistan, including the termination of energy subsidies and the achievement of revenue targets in exchange for a $3 billion loan. The IMF loan aimed to resuscitate Pakistan’s beleaguered economy, which was severely impacted by the Covid-19 pandemic and last year’s floods.

In defense of the rate hike, the government contends that it is a necessary step to cover the escalating costs associated with fuel and power generation. Additionally, it asserts ongoing efforts to enhance the efficiency and transparency of the power sector while mitigating circular debt. However, these assurances have failed to mollify citizens grappling with rising prices of essential goods and meager incomes.