Fuel adjustment: Consumers to pay Rs3 per unit extra for August

Published: October 14, 2011

The increase in electricity tariff is the result of cost adjustments for a hike in fuel price in August.

ISLAMABAD: For electricity that you consumed in August and paid for in September, you will have to pay some more, the power pricing regulatory body announced on Friday.

The National Electric Power Regulatory Authority (Nepra) allowed the country’s power distribution companies an unprecedented increase of Rs3.04 per unit in electricity charges under ‘monthly fuel adjustments,’ for the month of August.

(Read: Power crisis measures)

The retrospective adjustment will be applicable on all domestic and commercial, consumers except those served by Karachi Electric Supply Company and those consuming less than 50 units per month, a benchmark fixed for lifeline consumers.

Power distribution companies had requested Nepra to allow for an unprecedented hike of Rs3.06 per unit on grounds of loss incurred due to high cost of furnace oil used for electricity generation in August.

The hike was reportedly the highest-ever requested by the distribution companies.

After hearing of their plea on Friday, Nepra allowed them to apply a fuel adjustment charge of Rs3.04 per unit for the month of August. The adjustment would be recovered from customers in the next month’s bill.

The National Assembly on Friday formally announced that a 17-member special committee had been formed to identify the reasons for the current power crisis and propose remedial measures.

Although the motion was adopted unanimously, the notion of the committee was questioned by some quarters. Syed Asif Husnain from the Muttahida Qaumi Movement (MQM), warning against expecting too much from committees, reminded the house that a special committee set up to monitor oil prices had failed to make any significant contributions and was no longer functional.

(Read: Cabinet meeting – Short on ideas, govt unveils ‘new’ energy plan)

Similarly, Begum Ishrat Ashraf from the Pakistan Muslim League-Nawaz (PML-N) suggested the house entrust the matter to an already existing committee on water and power.

Constituted by Speaker National Assembly Dr Fehmida Mirza, in consultation with parliamentary leaders from all political parties, the committee will submit its proposals before the next session on November 14.

However, despite 15 days having passed, there has been no progress towards setting up a parliamentary committee to oversee the implementation of previous resolutions, including one agreed during the recent All Parties Conference (APC) on national security.

The matter is likely to linger even further, as the speaker is scheduled to leave Pakistan for a five-day visit to Tirana, Albania, along with a parliamentary delegation.

The 17-member special committee comprises: Rana Muhammad Farooq Saeed Khan, Nawab Muhammad Yousaf Talpur, Khurrum Jehangir Wattoo, Dr Ayatullah Durrani, Shahid Khan Abbasi, Rana Tanvir Hussain, Muhammad Baligh-ur-Rehman, Rana Asif Tauseef, Sheikh Waqas Akram, Muhammad Farooq Sattar, Bushra Gohar, Hameed Ullah Jan Afridi, Muhammad Jadam Mangrio, Mufti Ajmal Khan, Aftab Ahmad Khan Sherpao, Usman Khan Tarakai and Saima Akthar Bharwana.

ADDITIONAL REPORTING BY QAMAR ZAMAN

Published in The Express Tribune, October 15th, 2011.

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Reader Comments (31)

  • Raza
    Oct 14, 2011 - 2:52PM

    Should we all commit suicide or emigrate?

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  • H.A. Khan
    Oct 14, 2011 - 3:18PM

    NEPRA should not allow power increase to KESC till they improve their service delivery

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  • Dan
    Oct 14, 2011 - 3:25PM

    bravo, democracy is stabilizing. This hike only indicates that how much the politicians are bold and confident now.

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  • Usama
    Oct 14, 2011 - 3:30PM

    Dr. Fehmida Mirza, there isn’t any rocket science required in the investigation of crisis of power shortage. Even a normal man knows what is behind it. I can also explain what is the reason.

    &

    Why only Furnace Oil is being used in power generation when we have other cheap alternates?

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  • Abdullah
    Oct 14, 2011 - 3:32PM

    Have mercy on middle class people, who are living hand to mouth. Before its too late for all these politicians.

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  • Still a Pakistani
    Oct 14, 2011 - 3:47PM

    Things are getting worse since 2007… So called democratic govt / system has failed miserably…!
    We don’t want democracy please as it is coking us now, Dictator time was better,
    We miss you Musharaf… This time I will vote for sure…!

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  • rational thinker
    Oct 14, 2011 - 4:19PM

    Nice move by Nepra.. I hope they dont get scared of the political mob and dont backtrack. There is no solution but to sell electricity=cost price. Also they should start massive campaign and take severe actions to stop electricity theft

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  • JJ
    Oct 14, 2011 - 4:24PM

    The price hike will not be applicable to Karachi Electric Supply Company customers
    POOR KESC.

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  • Maher
    Oct 14, 2011 - 4:32PM

    Protest protest & protest but we have to pay it….Recommend

  • Kiran Peter
    Oct 14, 2011 - 4:32PM

    Yes, agreed on Abdullah’s comment and also keep in mind the lower middleclass and poorer people. They won’t be able to use electrity due high cost.

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  • Faisel Hafeez
    Oct 14, 2011 - 4:36PM

    This is the most ingenious approach to end Load Shedding.
    Make Power so expensive that people will voluntarily opt for Load Shedding !

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  • Pundit
    Oct 14, 2011 - 5:30PM

    @Faisel Hafeez: what you say would be funny were it not be so tragic!

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  • insan
    Oct 14, 2011 - 5:45PM

    Ohhhhh sadistic government employees must be happy now.

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  • Waah Pakistan
    Oct 14, 2011 - 5:45PM

    What about electricity theft? No increase in monthly private charges on those Kunda System. NEPRA supports KUNDA SYSTEM.

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  • A2Z
    Oct 14, 2011 - 6:37PM

    After nearly 4 years in the govt, they realized they have to make some committee to investigate the power crisis. Instead of this price hike NEPRA should have asked the power companies to use the cheap alternative. But the most easy solution of everything is to increase the prices. People are like insects for them lets get out of our houses and get rid of such rulers….Recommend

  • Zerghoon
    Oct 14, 2011 - 7:07PM

    Please please
    next time
    10 time think
    then give vote

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  • Birbal
    Oct 14, 2011 - 7:28PM

    wow .. just thinking .. I pay aprrox. INR Rs 7 / unit of eletricity in Jammu ..

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  • sanwar
    Oct 14, 2011 - 7:43PM

    What about the corruption in the power department? There can be no power theft without the consent of WAPDA employees.

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  • haris
    Oct 14, 2011 - 7:48PM

    only Rs3.40/unit hike?????

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  • Mohsin
    Oct 14, 2011 - 8:45PM

    They will it make it so expensive that only affordable mean will to get electricity will be KUNDA.

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  • R S JOHAR
    Oct 14, 2011 - 9:12PM

    Thats criminal for any ordinary citizen. Why Pakistan is using furnace oil which to the best of my knowledge is not used in India ?

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  • Maryam
    Oct 14, 2011 - 10:02PM

    Seeing the comments here, it seems that most of the respondents are against the price hike. I know the same bunch of lot will be also against IMF, World Bank, and US Aid et al. The same bunch of lot will be, for sure, also against more Income and Sales taxes. Don’t know how the government can generate the resources to spend on education, health and the Mighty Army et al..

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  • Bilal
    Oct 14, 2011 - 10:27PM

    Another drone by NEPRA, where to run ehh !!!!!!

    A common sense question: Under Anti-Trust laws if a company say they are going to charge lets say Rs 2 per unit and a month later after you bought it @ Rs 2/unit the company realizes oh no it should have been Rs 3/unit charge them retrospectively. THIS IS ABSOLUTELY AGAINST COMPETITIVE PRACTICES AND ANTI-TRUST LAWS. I say some good human rights organization should get a petition signed by as many people in Pakistan against this retrospective charges and make it a law you can’t just decide to charge people who have already paid for something. On the other hand it is obvious these people don’t care about fixing the root cause; I do see a decline in GDP growth rate.Recommend

  • Pundit
    Oct 14, 2011 - 10:30PM

    This is not price hike…this is only an adjustment.

    Hope it sounds better like that!

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  • Bilal
    Oct 14, 2011 - 10:30PM

    Perhaps everyone should move to Karachi; PPP will have more voters – well thought haha

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  • haris
    Oct 14, 2011 - 11:54PM

    @Faisel Hafeez:
    dear that’s the economic rule to meet the demand increase the product price lest face the shortage.

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  • Bilal
    Oct 15, 2011 - 12:21AM

    @Maryam:
    your argument is correct if and only if we reduce inefficiency level to a bare minimum possible lets say 5%-8% but definitely not at 25% + ….. raising prices is not the solution… getting people to pay in excess of Rs 300 billion owed by people both in private and public sector. If you really wanna pull that argument then FATA and Sindh Government should be the thrown off the grid immediately; one of the biggest defaulters. Why should people in Punjab pay for them in terms of higher fares?

    OH WAIT; why not apply the same judgement passed by Peshawar High Court followed by Sindh High Court and Balochistan High Court – If resources (GAS) are being extracted from KP they should consume it first and then pass on to other provinces (which has doubled the gas consumption level in KP just because a judge gave a verdict). So any electricity being produced in Punjab should be at Punjab disposal first and I literally mean down to last KW. So in essence raising prices is not the solution i-e one group of consumer is hurt and KESC isn’t. Its called price discrimination.Recommend

  • Abdul-Razak Edhy
    Oct 15, 2011 - 12:43AM

    The net tariff to consumers of different categories in Karachi vice-versa other places should only clarify as to why KESC consumers are exempted. I have no current comparative figures with me, but a few years ago Karachi consumers were already paying substantially higher prices compared to up-country consumers. Will Express Tribune poke their economic commentators to throw some light by providing comparative data for last few years and now? It will save a lot of misunderstanding among your readers and would help improve the standard of reporting.

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  • zia ur rehman
    Oct 15, 2011 - 6:29AM

    down with the status quo parties!!!!

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  • My Comments
    Oct 15, 2011 - 7:27AM

    I think we ourself are responsible for this as we voted either without thinking or voted based on cast system. Next time be careful when you vote as your elected members are not going to come and pay your bills so select a person who is right for the job. Feel responsible and do not take Pakistan to self destruction, it high time to wake up. Note that your vote to a party will make someone head of the state so see if he is right for us, otherwise with the speed we are going, we may not survive next 5-10 years.

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  • Faisel Hafeez
    Oct 15, 2011 - 2:58PM

    @haris:
    My dear, even the price increase is not going to balance the demand, because the generation capacity is under utilized, hence the shortage will always be there. The Solution lies in better management of resources, and increasing the generation capacity, to meet the ever increasing demand with alternatives designed for producing cheaper energy.
    In this case we are being victimized because our leadership is seeking refuge in easy solutions, like the Tariff Increase, and not taking the bold decisions to go after the Power Theft and managing line losses.
    Why should we be made to pay for their misguided priorities ?
    This is our Democratic Right to demand Honest and Efficient Management.

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