Power tariff up by 12per cent

ISLAMABAD: The government notified on Friday a 12 per cent increase in electricity tariff for three months from January. The tariff will be increased by another six per cent for April- June.

“Through this increase, the government meets one of key IMF demands, to abolish subsidies on electricity,” an official said.

However, subsidies have not been withdrawn for lifeline consumers, but the tariff for the sector is set to increase by around 43 per cent, due to fuel adjustment charges.

Official of the National Electric Power Regulatory Authority (Nepra) said that tariff determination amounted to around Rs630 billion, but approvals given by the government is for Rs400 billion.

The government increased power tariff by 1.6 per cent on Dec 22 under IMF pressure to adjust subsidy allocation.

“IMF officials pointed out that the six per cent increase made during October-December was actually 4.4 per cent because of subsidies,” the official said.

Under the notification issued on Friday, electricity charges for lifeline consumers have gone up from Rs1.6 per unit to Rs2 and for agricultural tubewells to Rs1.5 per unit for various categories in the eight power distribution companies.

Similarly, rates for street lights have been increased from Rs10.2 per unit to Rs13 per unit.A spokesman of the ministry of water and power said that the subsidy for lifeline customers and farm tubewells had not been withdrawn, adding that the government provided Rs14.6 billon in subsidy for lifeline customers and Rs42.2 billion for agricultural tubewells.

Apart from abolishing subsidies, donor agencies also want the government to reduce transmission and distribution losses of Pepco and reduce the cost of power generation by Wapda’s units.

Pepco would launch programmes to curb electricity theft in two weeks, an official of the ministry of water and power said.