Pakistan Government Raises Electricity Prices Amid Consumer Backlash

In a series of tariff hikes, the government of Pakistan is preparing to raise electricity prices once more, following a recent petition by the Central Power Purchasing Agency (CPPA-G) seeking a Rs2.94 per unit increase in tariff for the month of March 2024. This move comes after consumers were already burdened with an additional Rs106 billion in March and April bills due to previous tariff adjustments.

The National Electric Power Regulatory Authority (NEPRA) is set to review the CPPA-G petition, with a public hearing scheduled in the near future. If approved, consumers could face an extra cost of over Rs30 billion in their May bills. The government claims to have reduced the hike from Rs7.06 to Rs2.94 per unit, but the overall burden on consumers continues to rise.

Notably, NEPRA had previously allowed power distribution companies to charge an additional Rs4.921 per unit in April, adding to the financial strain on consumers. With multiple tariff increases in recent months, the total impact on consumers has reached a staggering Rs106 billion, including General Sales Tax.

As electricity prices in Pakistan continue to climb, consumers are facing mounting financial pressure. The government's efforts to reduce the tariff hike may provide some relief, but the overall impact on consumers' wallets remains significant. With further tariff adjustments on the horizon, the future cost of electricity in Pakistan remains uncertain.