The Federal Cabinet did not approve the increase in the price of electricity on the recommendation of NEPRA. The new tariff adjustment will be increased by only 8 paise instead of Rs 1.72. Explanation of Federal Minister for Energy Hamad Azhar
Islamabad: Federal Minister for Energy Hamad Azhar termed the news of an increase in power tariff as baseless, saying that the federal cabinet did not approve the increase in power tariff on the recommendation of NEPRA, adding that the new tariff adjustment would be Rs 1.72. Instead, it will increase by only 8 paise. He said in his explanatory statement that the quarterly tariff adjustment in electricity bills would expire in October.
News of a sharp rise in electricity prices is unfounded. The new tariff adjustment will increase by only eight paise instead of one rupee 72 paise. In his explanation on Twitter, he said that the federal cabinet did not approve the immediate increase in the price of electricity despite the recommendation of NEPRA.
The Ministry of Power has been directed to request NEPRA to reconsider the decision so that the price of electricity remains the same and an increase of only eight paise in October.
He said that one QTA of electricity was being released in October and an alternative QTA would be implemented in its place. This will increase the price of electricity by 8 paisa per unit and not by Rs 1.72 which needs to be clarified. It should be noted that media reports said that the federal government has decided to increase the price of electricity by Rs 1.72 per unit. The federal cabinet has also approved to increase the price of electricity.
The Federal Cabinet approved the summary through circulation, the increase in the price of electricity will be in three 3 different quarterly adjustments. The price of electricity in the fourth quarter of the fiscal year 2020 is increased by 82 paisa per unit. While the first, second quarter adjustment of the financial year has been approved to increase the price of electricity by 90 paisa per unit, the increase in electricity prices will be implemented from October 2021.