Karachi: The Prime Minister has given the Ministry of Water and Power a go ahead to raise power tariff by 53 paisa/unit for the power distribution companies (Discos) however, the decision is yet to be approved by the cabinet.
According to Alfalah Securities Limited, The power tariff for domestic consumers would be raised by 17 paisa/unit on consumption of 1-100 units/ month, 26 paisa/unit for 101-300 units consumption, 43 paisa/unit for 301-700 units consumption, 53 paisa/unit for 700 units consumption while, the Time of Day (ToD) peak and off peak tariff would be raised by 49 paisa/unit and 27 paisa/unit respectively.
Moreover, tariff hike for industrial, commercial and agricultural consumers are also within this range. The Prime Minister has also approved a proposal of increasing the existing 4% surcharge on power tariff to 8% for all discos excluding Wapda while, the proposal is to be finalized by the cabinet’s approval. The proposal for increasing tariff surcharge from 4% to 8% is aimed at reducing all sorts of subsidies being given to the consumers and to ensure full cost recovery by the government while, the tariff hike would be in adherence with the “Business Plan FY12” which requires an increase in power tariff by 12% in FY12.