The government has not increased the duration of peak hours for electricity consumers despite reports last week of extended peak hours to meet a requirement of the International Monetary Fund.

The increase in peak hours is not referenced in the National Electric Power Regulatory Authority’s (NEPRA) latest pricing determinations for distribution companies, nor a part of its strategy, reported Business Recorder.

There was gossip on social media that the government had extended peak hours by two hours beginning July 1, 2023, a development that was decried by the public.

Besides the increase in basic electricity tariff by Rs. 4.96 per unit across the board for July bills, the extension of peak hours has been shelved for the time being.

It bears mentioning that the increase in base tariff by Rs. 4.96 to Rs. 29.78 per unit is expected to help raise Rs. 3.28 trillion in revenue during 2023-24.

Meanwhile, negotiations on notice and adjustment of related subsidies for poor consumers in the rebased pricing are reportedly underway. The Power Division is awaiting approval of a rebasing summary from the Prime Minister and Finance Minister, which will later be authorized by the Cabinet. NEPRA is engaged as a prime consultant to help expedite the matter on priority.

NEPRA is also expected to convene a public hearing on the case. The new rebasing will likely add roughly Rs. 2-2.5 per unit to their bills because the effective cost is already Rs. 29.78 per unit including quarterly tariff adjustments.

Source: Pro Pakistani