Electricity Prices Expected to Surge by Rs3.53 per Unit in Pakistan

In a recent Development the National Electric Power Regulatory Authority (NEPRA) has received a request from the Central Power Purchasing Agency (CPPA) to increase Electricity Prices by Rs3.53 per unit. The proposal is set to be discussed in a NEPRA hearing scheduled for November 29, where the CPPA will present its case for the tariff hike, citing it as necessary for the month of October under the monthly fuel adjustment mechanism.

If approved this increase is anticipated to impose an additional financial burden of Rs40 billion on Power Consumers in Pakistan. The Cabinet Committee on Energy (CCoE) had previously greenlit a summary during its meeting declaring that officers within the Power division ranging from Grades 17 to 21, would receive a utility allowance in lieu of the free electricity units they were entitled to.

While the Government has taken steps to rationalize Electricity-related expenditures, it has faced Resistance from the Water and Power Development Authority (WAPDA) Employees Union. In response to reports suggesting the potential termination of free Power facilities for WAPDA employees a Protest demonstration was organized in Lahore.

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The President of the WAPDA Union has Strongly opposed any move to eliminate the longstanding benefit of free Electricity for employees. The discontent among WAPDA employees Highlights the Challenges faced by the Government in balancing the need for Economic reforms with the Expectations and Demands of various Stakeholders.

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As the NEPRA hearing approaches the fate of the Proposed Electricity Price hike hangs in the Balance with Potential ramifications for both the Government’s financial objectives and the concerns of Power Consumers and employees alike.