Minister says power purchase agreements were signed with private companies at expensive rates. PHOTO: AFP/FILE
Addressing a news conference, the minister said the PML-N government had not increased the tariff for 18 months prior to the general elections.
“The PML-N government did not timely increase the power tariff amounting to Rs226 billion as it wanted to get votes in the elections,” he said, adding that now the nation was suffering because of its flawed policies.
"I have repeatedly said in the National Assembly, the Senate and to the standing committees and the media that the PML-N is responsible for the tariff hikes.”
Ayub said the Economic Coordination Committee (ECC) of the Cabinet had approved an increase of Rs0.30 per unit in the power tariff and the federal cabinet would ratify it in its meeting.
“The tariff increase will not have any financial impact on 75 per cent of consumers, who use less than 300 units of electricity per month,” he maintained.
He said the National Electric Power Regulatory Authority (Nepra) had increased the electricity tariff by Rs0.83 per unit to pay six months’ capacity charges of thermal, coal and LNG power plants and because of the hike in interest rate and devaluation of the rupee.
Nepra allows Rs1.66 hike in power tariff
“The tariff increase was changed from Rs0.53 per unit to Rs0.83 per unit to shift the burden on well-to-do consumers and shield the consumers who use less than 300 units in line with the instructions of Prime Minister Imran Khan, who has always stressed the need for providing relief to the working class and poor people.”
The minister said the government was trying to reduce the circular debt. “During the tenure of the PML-N government, the circular debt was increasing by Rs38 billion per month. The Pakistan Tehreek-e-Insaf [PTI] government has reduced the circular debt to Rs10-12 billion per month,” he added.
Ayub said the power ministry had saved Rs84 billion by improving efficiency in the power sector and stopping electricity theft.
He further said Rs25 billion would be spent on the distribution and transmission system and the purchase of meters and transformers.
“The government is making efforts to reduce the rate of electricity.
The main plank of the new energy policy is to increase the generation of renewable energy and that will bring down the rates,” he maintained.
Ayub said the prime minister was stressing the need for ease of doing business as it would create new opportunities for investors.
“Investors are lining up to invest in the power and petroleum sector,” he said, adding that Saudi Arabia would invest $4 billion to build a 500MW power plant in the country.
To a question, he said Nepra was an independent regulator and working according to law without facing pressure from anybody.
To another query, the minister said recoveries were being made from those involved in theft irrespective of their background.
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