ISLAMABAD: The federal cabinet on Friday approved an increase of Rs 1.68 per unit in electricity tariff.
The sources further said that the approval was given by the cabinet through a circulation summary.
Considering the summary sent for approval by the Ministry of Energy, the government increased electricity prices by Rs 1.68 per unit.
An analyst told Geo.tv that the government had sought approval from the federal cabinet to increase electricity tariffs to stay in the International Monetary Fund (IMF) program.
He further said that according to the summary, the maximum price of electricity for domestic consumers has been proposed at Rs 24.33 per unit.
Citing a summary circulated among cabinet members, the analyst said that the decision on power tariffs would result in a reduction of Rs 72 billion in electricity subsidies for the rest of this financial year.
Earlier, the National Electric Power Regulatory Authority (NEPRA) had increased electricity rates by Rs 1.95 per unit for August 2021 due to the Fuel Cost Adjustment (FCA).
According to the notification issued in this regard, the Central Power Purchasing Agency Guarantee (CPPA-G) had requested a positive FCA of Rs 2.7 per unit.
It was clarified that for August 2021, the FCA will receive the October 2021 bill, which will be paid through the consumer categories of all distribution companies except Lifeline and K Electric customers.