Govt evolves plan to collect additional Rs 721 billion from electricity consumers during current fiscal year

ISLAMABAD, Sep 24 (Online): Under IMF condition, government has worked out planning to charge additional Rs 721 billion to electricity consumers during current fiscal year.

Sources said electricity tariff will be inflated by Rs 1.25 per unit till September under the head of quarterly adjustment. This way government will collect additional Rs 39 billion from consumers against quarterly adjustment for the month of September.

Cost of electricity will be scaled up by Rs 4.37 per unit from September to December under fuel adjustment head and this way government will recover additional Rs 122 from the consumers.

Rs 560 billion will be charged to consumers through electricity bills by raising cost of electricity Rs 5.75 per unit under the head of rebasing of power tariff.

The additional amount will be utilized to mitigate circular debt of power sector.

Finance ministry sources said circular debt of power sector will be restricted to Rs 2130 billion by the end of current year. Circular debt of power sector had reached Rs 2700 billion till June 2023.

The plan worked out by finance ministry and energy ministry for enhancing power tariff has been shared with IMF.