Power tariff explosion: 30% hike in electricity rates expected for domestic consumers

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A 30 percent increase in electricity tariff for domestic consumers is expected from October 1.

Per details, the new tariff will be applicable upon the utilisation of 200 or more electricity units. The increase in tariff is one of the requirements of the government’s loan deal with the International Monetary Fund (IMF).

It should be noted that parliamentary approval is not required to take the decision.

Earlier, as a requirement for the initial reimbursement of the loan given by the IMF, the electricity tariff for the agricultural sector was increased and its subsidy was cut.

There has also been a sudden hike in the power tariff for the textile industry which is likely to render the sector incapable of competing with other countries in the international market, including India, China, Bangladesh and Sri Lanka, whose cost of business is much lower due to several subsidies.