ISLAMABAD: The federal government has notified the long-awaited increase in electricity tariff for the K-Electric consumers from Rs1.09 to Rs2.89 per unit.

The power utility’s consumer end tariff was on hold for the last several months by the federal government due to political considerations and Covid-19. K-Es’ management wrote several letters and held meetings with the federal government for early notification of determined tariff as it was facing a severe financial crunch.

On Monday, the Power Division issued a notification to increase the price of electricity from Rs 1.09 to Rs 2.89 per unit for K Electric consumers effective September 1, 2020.

Nepra determines the electricity tariff which is notified by the Power Division on behalf of the Federal Government. In order to resolve and rationalize eleven quarterly adjustments of K-Electric from July 2016 to March 2019, following submissions were made by Power Division for consideration of the ECC of the Cabinet on March 18 2020: "The recommended quarterly adjustment to the tune of Rs.4.87/- being the differential between the schedule of tariff recommended by Nepra for April - June 2019 and schedule of tariff earlier recommended by Nepra and reflected in the KE Notified Tariff, be, notified for each category of consumer, to the extent of bringing K-Electric consumers end tariff at par with what is currently in field for consumers of DISCOs (increase in rate of Rs.1.09 to Rs.2.89/kWh for various categories of consumers). “Any difference between the two rates be made available by way of subsidy which shall amount to Rs.26 billion only,” the notification stated. —MUSHHTAQ GHUMMAN