Govt raises base power rates by Rs1.95/unit.

ISLAMABAD -- The federal government yesterday increased the base power tariff by Rs1.95 per unit which will have an impact of Rs 200 billion on the electricity consumers.

Addressing a joint press conference along with Minister for Planning and Development Asad Umar and Special Advisor to Prime Minister on Power Tabish Gauhar, Federal Minister for Energy Omar Ayub announced increasing the per unit price of electricity saying it was inevitable as the decisions taken by the previous PML-N government is the reason behind the hike in tariff.

He said that due to the flawed power policies of the PML-N government the due increase in tariff during the current year was Rs 218 billion or Rs2.18 per unit but the PTI government increased it only Rs 1.95 unit.

"The previous government planted landmines for us with its policies, causing for us to fall in trouble as we try to manage the affairs of the country," the energy minister said. In reply to a query, the minister said that the total impact of the increase will be Rs 200 billion.

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It is worth to mention here that NEPRA had recommended an increase of Rs 3.30 per unit in the base electricity price which would have increased the existing base tariff of Rs13.35 per unit to Rs16.65 per unit. Since the government has decided not to pass on the entire hike in one go and increased it by Rs 1.95, therefore, the base price will go up from the existing 13.35 per unit to Rs 15.30 per unit.

SAPM Gauhar said that to reduce the circular debt the government has taken several steps. Memorandums of Understanding (MoU) were signed with the IPPs with the capacity of 8000MW and now the negotiations...