Govt Acknowledges Significant Power Tariff Increases Amid Regional Tensions

ISLAMABAD: The Power Division has finally acknowledged a substantial increase in marginal power prices, attributing the rise to regional conflicts and the burden of subsidised rates on other consumer categories. This admission came during a public hearing held by the National Electric Power Regulatory Authority (Nepra) on Monday.

During the hearing, officials revealed that the average cost of power supply has surged to Rs32 per unit, a notable increase from the Rs22.98 per unit offered to industrial consumers under the Incremental Consumption Package last December. Additional Secretary Mehfooz Bhatti and Naveed Qaiser, leading the government team, indicated that the retrospective correction of rates from June 9, as requested by broader industrial stakeholders, would require legal scrutiny.

The government’s stance appeared defensive, with Bhatti explaining that the incremental package was a result of extensive negotiations with industry representatives. However, he noted that the unforeseen ‘war scene’ had disrupted the economic fundamentals that had been previously established.

Looking ahead, the Power Division is expected to engage in further discussions regarding the implications of these tariff adjustments on various consumer groups. The government may also face pressure to reassess its pricing strategies in light of the ongoing economic challenges.