The government has devised a proposal with four possibilities for lowering circular debt, including raising the maximum electricity cost by Rs31.6/kWh through a new levy.
In a last-ditch effort to revive the stalled IMF program, the government has decided to increase electricity prices to revive the IMF Program.
The idea is to surcharge commercial, bulk, industrial, other, and general services while safeguarding domestic and agricultural industries.
Top official sources acknowledged that the cash-bleeding electricity sector was heading towards an unsustainable level as the sector’s requirement could rise to Rs1.73 trillion for the current fiscal year against an original budgetary allocation of Rs0.57 trillion.
Under the plan, there are four primary recommendations, three of which involve raising the electricity cost between Rs2.27/kWh and Rs12.59/kWh (maximum Rs31.6/kWh) for all five customer categories.
The government must change the NEPRA Act 1997 to impose the surcharge. Under option one, commercial consumers’ rates might rise to Rs94 per unit from Rs49 per unit.
The bulk consumer rate may increase to Rs77.9 per unit from Rs40 per unit, the industrial consumer rate to Rs80 per unit from Rs40 per unit, and the rate of the general service to Rs77 per unit from Rs40 per unit. Under option two, commercial consumers will pay Rs67 per unit, bulk Rs55 per unit, industrial Rs56 per unit, others Rs54 per unit, and general services Rs54 per unit.
Commercial consumer pricing will rise to Rs52 per unit, bulk to Rs43.37, industrial to Rs43, others to Rs42.4, and general services to Rs42.8.
