- Nepra set to raise electricity prices in Pakistan from September 1, sparking widespread protests in major cities
- Central Power Purchasing Authority (CPPA) requested a Rs2.17 per-unit increase in electricity prices .
- Caretaker Prime Minister Anwaarul Haq Kakar and his cabinet are striving to address public concerns .
Recent announcements from the National Electric and Power Regulatory Authority (Nepra) indicate an impending increase in electricity prices in Pakistan, effective from September 1. This decision has triggered large-scale protests across major cities, as citizens voice their frustration over soaring electricity bills.
The protests have been particularly intense in cities like Lahore, Islamabad, Rawalpindi, Karachi, Peshawar, Gujranwala, and Hyderabad. Demonstrators are expressing their dissent by burning electricity bills and refusing to make payments until the additional taxes and the proposed tariff hike are reconsidered.
The cause of this upheaval can be traced back to an application filed by the Central Power Purchasing Authority (CPPA) with Nepra. This application seeks approval for a Rs2.17 per-unit increase in electricity prices, citing escalating fuel costs as the main reason for the proposed hike. If this application is sanctioned, consumers will experience the impact on their electricity bills starting from September 2023.
Current Electricity Rates (as of August 30, 2023): The existing electricity rates per unit in Pakistan are segmented as follows:
- 1-50 units: Rs. 4.81
- 1-100 units: Rs. 7.87
- 101-200 units: Rs. 10.54
- 201-300 units: Rs. 12.89
- 301–700 units: Rs. 21.88
- More than 700 units: Rs. 24.93
Government Response and Challenges: Caretaker Prime Minister Anwaarul Haq Kakar and his cabinet have acknowledged the public outcry and are actively seeking solutions to alleviate the financial burden on citizens. However, implementing relief measures is proving to be a complex task.
One of the major hurdles is the need to reach an agreement with the International Monetary Fund (IMF) before any relief measures can be put into effect. This situation has left the government in a challenging position as they strive to balance the interests of the public with economic commitments on an international level.