In one go, 32.5 million consumers, mostly households, will have to pay an extra Rs580 billion this fiscal year due to mismanagement and poor energy policies over the past thirty years.
This increase is in addition to the existing electricity cost. Out of these, 26 million are poor to low-middle-income households, which are facing the biggest price hikes, ranging from 14.3% to 51%. The government has also introduced fixed monthly charges for residential users, ranging from Rs200 to Rs1,000 per unit, as part of the International Monetary Fund’s (IMF) requirements for a new bailout package. The average price increase is Rs4.55 per unit, raising the national average rate to Rs33 per unit.
The federal cabinet quietly approved the electricity price hike without a full discussion, affecting 32.6 million consumers. The new prices for industrial electricity are now Rs37.83 per unit. Commercial rates now range from Rs38.59 to Rs45 per unit, increasing up to Rs5.84 per unit or 15%. Fixed charges for industrial consumers have also been revised, with the government approving fixed charges between Rs400 to Rs1,250 per kilowatt hour per month. The new industrial tariff is Rs37.83 per unit, the same as last year but higher than the prime minister’s previous announcement.