Govt to raise power tariff by Rs2-6.8 per unit

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ISLAMABAD: The government has started planning to raise the power tariff across the country as the National Electric Power regulatory Authority (Nepra) has increased the tariff for consumers of the Islamabad Electricity Supply Company (IESCO) by Rs4.80 per unit. According to documents available with The News, the power tariff has been raised mainly because of the increase in electricity generation cost and hike in expenditures of the company in the ongoing financial year.

For domestic consumers, the power tariff will surge by Rs 1-4.8 per unit. The consumers, who consume just 50 units a month, have been exposed to increase in tariff by Re1 per unit.

And the power tariff is up by Rs2.30 for consumers who utilise 1-100 units a month and the tariff was hiked by Rs4.80 per unit for consumers who fall under the slab of 101-300 units per month.

The tariff has been hiked by Rs3 per unit for the consumers who fall in the slab of 301-700 units and those consumers who consume more than 700 units a month would be liable to pay more Rs1.50 per unit.

For industrial consumers, the tariff has been increased by Rs3.30 per unit and the same raise is for agriculture consumers.

National Electric Power Regulatory Authority (Nepra) has now increased the reference price of furnace oil for thermal electricity to Rs75,000 per tonne from Rs65,000 per tonne owing to which the power tariff would further increase. Iesco would earn revenue of Rs104.89 billion during the ongoing financial year 2012-13.

The determination of Nepra shows that life line consumers (who utilise just 50 units a month) are no more protected. Another astonishing decision in the determination shows that the maximum tariff has been hiked by Rs4.80 per unit for the consumers who consume 101-300 units. The officials argued saying that the electricity consumption is highest in the 101-300 units slab consumers and the government wants to increase the revenue by increasing the tariff for the said slab consumers.

However, the determination of Nepra also unveiled that the consumers who consume up to 700 units a month would pay additional Rs3 per unit and those who utilise more than 700 units per month would give more tariff of just Rs1.50 per unit. This means that the affluent consumers will pay less.

The average electricity tariff as per the determination of the Nepra about Iesco has also increased up to Rs13.64 per unit from existing average tariff of Rs8.87 per unit.

On other hand, top officials at Ministry of Water and Power said that with raise in power tariff for consumers of Iesco, the government now stood justified to raise the power tariff by Rs2-6.89 per unit for domestic consumers across the country except KESC consumers.

Likewise for industrial consumers, the power tariff will surge by Rs3.99 per unit, commercial consumers Rs2.23 per unit, and agriculture consumers Rs4.50 per unit and in case the said raise in power tariff is not extended to the consumers across the country, then the government has to provide Rs 400billion subsidy. The decision to raise the power tariff will be enforced with the nod of the caretaker prime minister.

When asked why there is the difference between the Iesco tariff determined by Nepra and the tariff the government has worked out that is to be implemented across the country, the official said in the last Iesco determination, the full raise in tariff was not implemented owing to which the backlog and the increase in new tariff have been joined. The government has worked out the raise in power tariff by Rs2-6.89 per unit for the consumers for whole country except KESC consumers.

Courtesy: The News


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