Power Division notifies up to Rs2.89 per unit increase in K-Electric tariff

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ISLAMABAD: Electricity consumers of K-Electric will bear up to Rs2.89 per unit hike as the Power Division has issued a notification to this effect.

According to the Power Division’s notification, “In pursuance of sub-section (7) 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the federal government is pleased to notify the adjustment in the approved tariff on account of quarterly adjustment with effect from September 1, 2020, as determined and recommended by National Electric Power Regulatory Authority (NEPRA).”

It is pertinent to mention that the federal cabinet’s Economic Coordination Committee (ECC), while contemplating a summary moved by the Power Division for the rationalization of eleven quarterly adjustments of KE from July 2016 to March 2019, had approved up to Rs2.89 per unit increase in the entity’s tariff from September 1, 2020. A subsidy of Rs4.7 billion was also provided to the entity on account of tariff differential.

With this increase, the KE tariff will be at par with other power distribution companies (DISCOs).

“The average tariff of K-Electric has now increased to Rs15.70/unit from Rs12.81/unit, which is equivalent to the tariff of the other DISCOs of the country,” an insider informed.

Sources said the ECC had earlier approved the hike in KE tariff on July 3, 2020, however, the decision was not endorsed by the federal cabinet and the implementation of tariff increase did not happen ostensibly due to power load shedding, as desired by some members of the federal cabinet.

This tariff hike was pending for the last three years, said sources.

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