ISLAMABAD:The National Electric Power Regulatory Authority (NEPRA) has endorsed the government decision to abolish Rs5 subsidy on electricity price. It forwarded its decision for notification to the federal government, sending a blow to consumers who facing hardships due to already high electricity prices and skyrocketing inflation.
According to NEPRA, the implementation of its decision regarding withdrawal of electricity relief package will be applicable from June 1, 2022. Former prime minister Imran Khan on Feb 28 had given Rs5 per unit cut in the electricity tariff and Rs10 per litre reduction in the prices of petrol and diesel. The relief package irked the IMF which stalled its loan programme for Pakistan.
After it took rein in April, the new PML-N government in order to win over the Fund’s Extended Fund Facility has started withdrawing fuel subsidies, besides jacking up energy prices time and again. Earlier on July 5, NEPRA approved Rs9.66 per unit hike in the rate of K-Electric power. The increase was made under the head of fuel adjustment charges for the month of May. It would release its detailed decision after taking a thorough analysis of the statistics.
According to the K-Electric authorities, the power company has yet to retrieve Rs380 billion in receivables. The NEPRA chairman offered assistance to the K-Electric if it needed to buy cheap electricity. He said that the regulatory body was ready to talk with the federal and provincial governments on behalf of the K-Electric for the provision of cheap electricity.