Govt bows down to IMF, imposes double surcharge on K Electric customers
A surcharge of Rs 3.23 per unit has been imposed on electricity consumers across the country from July 1. ECC has approved an increase of Rs 1.56 per unit this month and Rs 6.11 per unit in April and May to bring K Electric's tariff at par with other distribution companies
Surrendering to another IMF demand, the government imposed a surcharge of up to Rs 3.23 per unit on electricity consumers across the country from July 1, while a double surcharge was imposed on K Electric consumers.
The move is aimed at generating an additional revenue of Rs 335 billion during the next financial year to pay off the debts and liabilities of the power sector.
K Electric consumers have been well-rewarded for double-tabling. The government has allowed K Electric to increase the tariff by Rs 1.56 per unit this month and then by Rs 6.11 per unit in April and May. The move aims to bring the company’s tariff at par with other distribution companies in the country.
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These decisions were taken in a meeting of the Economic Coordination Committee (ECC) of the Cabinet under the chairmanship of Finance Minister Ishaq Dar. And waiver of storage charges for cargoes stranded at the port due to LC issues was approved.
A senior power division official said Thursday to double electricity rates during peak hours (after 8 pm) for commercial consumers after government efforts to close the markets after sunset to save energy failed. A separate case will be presented before the federal cabinet. .
A government statement said that the ECC also approved the Power Division’s proposal to increase the surcharge for the fiscal year 2024 to pay the dues of the power generation companies to the government. will also be applicable to consumers so as to maintain a uniform tariff across the country.
The government has already approved an additional surcharge of Rs 3.39 per unit for the remaining four months (March to June) of the current financial year and is currently going through the regulatory process for notification.
Under the Rs 335 billion financing plan for the new surcharge in FY 2023-24, protected consumers using up to 200 units will incur an additional cost of 43 paise per unit. This surcharge will increase to Rs 3.23 per unit for all other customers during the next year.
Meanwhile, the ECC also approved an increase in tariff of Rs 1.56 per unit for all consumers except those consuming less than 100 units of K Electric with a recovery period of three months (March to May 2023). Apart from this, KE customers will also be charged another average tariff increase of Rs 3.21 per unit for the recovery period of two months (April and May 2023).
