ISLAMABAD: Electricity consumers will have to pay Rs4.34 per unit charges more on their monthly bill, resulting in a total burden of Rs35 billion in the face of fuel adjustment charges (a system designed to adjust monthly electricity fees based on fluctuations in fuel prices) in a month.

This came after the National Electric Power Regulatory Authority approved the Central Power Purchasing Agency’s request for an Rs4.34 per unit increase in the power tariff against the demand of an Rs4.69 per unit for July during a hearing on Wednesday.

The notification for the increase in tariff would be issued later.

Read more: Explained: Pakistan’s fuel adjustment charges

The federal government had warned of a “difficult few months” in July for household consumers as the cabinet approved an Rs3.5 per unit increase in the power tariff.

“There are two types of consumers, firstly those who use 1 to 50 units and secondly those who use 1 to 100 or 200 units of electricity. The cabinet decision would not impact those whose bill remain below 50 or 100 units,” State Petroleum Minister Musadik Masood Malik, alongside Power Minister Khhurram Dastgir, had explained after announcing the decision.

Prime Minister Shehbaz Sharif suspended on August 20 fixed sales tax collection through the electricity bills and directed officials to formulate a new mechanism in this regard.

“An inquiry must be conducted over the levy of increased sales tax ratio on shopkeepers/retailers, in the electricity bills other than the agreed one,” he had said while presiding over a review meeting on the electricity rates and fixed sales tax collection through electricity bills in Lahore.

The development comes after the government decided to withdraw a fixed tax regime on electricity bills for one year on August 4. The breakthrough was achieved after three days of talks between the government and the traders’ community that has been in protest against the levy since July 1.