Minister for Water and Power Raja Pervez Ashraf. — File photo

ISLAMABAD: The Ministry of Water and Power has announced a two per cent hike in electricity rates, which will be applied November 1 onwards.

The electricity price notification issued by the Ministry of Water and Power will come into effect November 2010 and the increased rate will be included in peoples’ electricity bills for November.

The new price hike will affect domestic and industrial users both.

The Ministry of Finance said that the government is giving a Rs.68 billion subsidy on electricity and its removal is included in the terms given by the IMF.

The Finance Ministry said that under the terms of the IMF, there will be an increase of 17 per cent in power prices, which will be implemented in phases.

The Minister for Water and Power Raja Pervez Ashraf has admitted that during his time in office, there has been a 95 per cent hike in electricity prices.