KARACHI: Another hike in power tariff by Rs3.03 per unit for the K-Electric consumers under Fuel Cost Adjustment (FCA) for the month of July 2024 has been finalized, mechanism is to recover an additional amount of Rs6.105 billion for the month of July 2024 said Ateeq ur Rehman (economic & financial analyst).

There is a great need to rationalize the exorbitant energy cost as this is going to be an additional burden on consumers being new rates are applicable to all categories of consumers.

He said that existing huge base tariff with additional charges will lead to higher electricity bills for consumers. This is going to be another power shock. Under such circumstances when household is suffering, especially Karachi test are battling with personal budget, slow earnings and increase in energy tariff. The salaried class is already overburdened of taxes to the tune of 35%. This is like havoc.

July FCA: KE allowed Rs3/unit tariff hike

He added that most pathetic scene is disparity between protected and unprotected electric consumers places an immense burden on low-income households, often feeling like a punishment for their financial struggles. Protected consumers enjoy subsidies and lower rates, while unprotected consumers face exorbitant bills that can consume a significant portion of their income. This inequity not only exacerbates financial hardship, forcing families to choose between basic needs like food and electricity. As energy prices rise, the stress and anxiety of managing these costs can feel insurmountable trapping vulnerable communities in a cycle of poverty and deprivation. Industrialization has become a dream, too.

To keep the wheel moving Government should rationalized taxes on energy sector, restrain from imposing further taxes and raising the cost of electricity.

Copyright Business Recorder, 2024