'Pak power tariff highest in region'

Energy minister says govt working on providing relief to masses

ISLAMABAD:

Energy Minister Awais Laghari acknowledged on Tuesday that the electricity rates in the country were the highest in the region, but emphasised that the government was working on providing relief to the masses, who could expect "positive news in a month or two".

Addressing the National Youth Convention in Islamabad, the minister stated that Pakistan's actual electricity generation capacity was 29,000 megawatts and not the often-cited figure of 45,000MW. He noted that the year-round demand was just 7,000MW, with peak demand reaching up to 24,000MW.

"I admit, we are providing the most expensive electricity in the region," Laghari said. Speaking about the capacity payment to the Independent Power Producers (IPPs), which is often blamed for the exorbitant hike in the power tariff, he said such a payment was the cost of avoiding load-shedding.

"Rs50 billion can be saved if two hours of load-shedding is endured for 40 days. I am talking about the areas where there is no load-shedding and no line losses. Out of 8,760 hours of the year, if 10% ie 874 hours of load-shedding is endured, there will be saving of Rs100 billion in capacity payment," he said.

Because of the high cost of electricity generation, the minister said, the industries across the country were shutting down, but the government was "now providing electricity to the industries at lower rates, bearing the additional costs".

The minister explained that earlier, the cost of electricity for the consumers was Rs10 per unit, but it increased because of the rupee depreciation against the US dollar. "The current average electricity cost stands at Rs44 per unit", he added.

He told the audience that within one to two months, the government, in collaboration with agencies and other institutions, will deliver positive news regarding the IPPs that would benefit both the public and industrial sectors.

"In one to two months the government will give good news regarding IPPs. This matter [provision of relief] is being worked on. Various agencies, including the government and intelligence agencies, are all working together on this and will soon give results on the IPPs issue," he added.

He also announced that the government was planning to establish new power plants to address the issue of load-shedding in the country. "Within a month or two Prime Minister Shehbaz Sharif will give good news to the public and the industries," he said. "Everyone will be benefited from it", he said.