Power tariff same for consumers with 200 units

Islamabad: Power division officials said that government will give subsidy of Rs158 billion to electricity consumers and there will be no increase in power tariff for consumers of up to 200 units.

Chairman National Electric Power Regulatory Authority (NEPRA) heard the government's petition to increase the basic price of electricity up to Rs7.5 per unit, in which the Power Division gave a briefing to NEPRA.

NEPRA officials said the main cause for the increase in the tariff is the devaluation of the rupee and capacity payments. It is government's job to increase the slab, which is a political and administrative decision that government has to make.

Member NEPRA Rafique Sheikh inquired if there is law that determines the subsidy to the government and how much subsidy is to be given to which slab. He also asked which law gives this authority to the government.

Responding to Rafique Sehikh’s question, Power Division officials said: “Government will give subsidy of Rs158 billion to electricity consumers and no increase will be made for consumers up to 200 units”.

On this, Chairman NEPRA said that giving subsidy to protected is burdening other consumers.

Power division officials continued to say that 40 percent of the consumers in the country are living below the poverty line, the government is providing subsidy to these electricity consumers.

Member NEPRA inquired about the current international rates in comparison to Pakistan.

On this, Representative All Pakistan Textile Mills Association (APTMA) said that even a one percent increase in tariff has a negative impact on exports.

He continued to say, “Advertisements and billboards are being given a commercial tariff, if they go to alternative, they have to pay Rs300 per unit”.

Electricity companies start load shedding when their losses are high or recoveries are low. During the recent rains, 22,000 meters of electricity burned, how did it happened, the representative added.

Member NEPRA said that power division should make an economic case for subsidy for electricity consumers, if they are giving subsidy to domestic consumers, on the other hand making industrial sector to suffer.

Later, NEPRA concluded the hearing on the issue of increase in electricity price by Rs7.5 per unit and reserved its verdict, which will be sent to the federal government after reviewing the details and the government will issue a notification for the increase in electricity price.