Electricity Tariff Will Not Be Increased For Now
Electricity Tariff Will Not Be Increased For Now: Government on Tuesday announced to take ‘decisive action’ on electricity tariff aimed at avoiding Rs420 billion annual subsidies but approved to supply subsidised gas to five export oriented sectors that will cost taxpayers Rs63.5 billion.
The Economic Coordination Committee (ECC) of the Cabinet allowed provision of imported Re-gasified Liquefied Natural Gas (RLNG) to five Punjab-based industries at half of the existing prices despite having no budgetary allocations. The Rs63.5 billion subsidy to textile, carpets, leather, sports and surgical goods will be given by issuing a supplementary grant, said officials of the Finance Ministry.
“We will soon take decisive steps on electricity prices increase,” said Information Minister Fawad Chaudhry while addressing media after the ECC meeting, chaired by Finance Minister Asad Umar.
While making a case for electricity tariff increase, the minister said the current electricity sale price of Rs11.71 per unit has shot up due to setting up of expensive power generation plants and net hydel profit payments made to provinces by the PML-N government.
Only because of expensive power generation, the cost of electricity would jump by Rs1.32 per unit. Another Rs0.86 per unit surge is on account of net hydel profit. However, compared with the current sale price of Rs11.71 per unit, the new average prices are Rs3.82 per unit or 32.6% higher.
The minister said the Qauid-e-Azam solar plant was producing electricity at a price of Rs17 per unit –claiming that it was the highest solar tariff in the world. He said the government has not yet taken a decision on how much of Rs3.82 per unit additional power generation cost will be passed on to user.
Currently, the government is bearing Rs2.63 per unit loss that translates into Rs34 billion to Rs36 billion monthly loss. This comes to on an average Rs420 billion annual subsidy.
The Petroleum Division officials said the subsidised gas supply will cost the kitty Rs63.5 billion. But the government has not budgeted the subsidy in the revised budget and will have to give supplementary grant.
For More Information & Videos Subscribe To Our YouTube Channel