Consumers who use more than 250 units of electricity a month will have to pay an extra cent for every unit of electricity they use from this Friday.

Cabinet has today approved the last phase of the electricity tariff increase approved by the commerce commission in September 2004, with effect from this Friday, the 1st of August.

However, the tariff will not apply to low income domestic customers who consume less than 250 units of power which is about $50 per month.

All religious organizations, schools, street lights and other nonprofit organizations are exempted from this tariff increase.

Cabinet based its decision on a submission by the interim Minister for Finance Mahendra Chaudhry who said the additional revenue from the increase will be used for the construction of new renewable power capacity, especially the Nadarivatu hydro power project.

Chaudhry added the construction of the project will result in more power capacity which is essential to meet national electricity demands.