ISLAMABAD: The federal government is preparing to amend the National Electric Power Regulatory Authority (NEPRA) Act to lift the existing 10% cap on electricity surcharges, enabling it to impose additional charges on power consumers, official sources revealed on Wednesday.
The proposed legal amendment would grant the government broader authority to levy surcharges beyond the current limit, allowing for case-by-case tariff hikes and flexible duration of implementation. This change is aimed at addressing persistent financial challenges in the power sector.
Officials disclosed that a proposal is under consideration to introduce an additional surcharge of Rs3.23 per unit on electricity bills, although a final decision has yet to be made.
Historically, revenue generated from electricity surcharges has been utilized to service interest payments on the ballooning circular debt. The government now plans to resolve the circular debt crisis by borrowing Rs1,275 billion from commercial banks, as part of a broader fiscal strategy.
Story by Zaigham Naqvi