Govt set to lift surcharge cap on electricity bills
The federal government is planning to impose additional surcharges on electricity consumers by amending the National Electric Power Regulatory Authority (NEPRA) Act, a move that would allow it to unilaterally increase electricity bills, sources said on Wednesday.
According to official sources, the proposed amendment to the NEPRA Act will empower the government to exceed the current 10% cap on electricity surcharges, paving the way for higher charges on consumer bills.
Sources said the government was preparing to remove the existing 10% limit on surcharges levied through power bills, with the new legal framework granting it broader authority to determine tariff hikes on a case-by-case basis and for specified durations.
A proposal is also under consideration to charge consumers an additional Rs3.23 per unit as a surcharge. However, a final decision regarding the increase has not yet been made, sources clarified.
In the past, surcharges collected from electricity bills were primarily used to pay interest on the growing circular debt. The government is now aiming to eliminate the circular debt altogether by borrowing Rs1,275 billion from commercial banks.
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