SM Tanveer demands tariff cut to Rs26/kWh

United Business Group Patron-in-Chief SM Tanveer has urged the prime minister, energy minister and Special Investment Facilitation Council to announce a reduced electricity tariff of Rs26 per kilowatt-hour (kWh) for consumers at the earliest.

This move is crucial in the wake of government's action against independent power producers (IPPs).

According to Tanveer, the electricity tariff has already been slashed from Rs46 to Rs34 per kWh and the industry is now expecting a further reduction to Rs26 to maintain its productivity.

He pointed out that the government had announced the termination and tariff revision of 27 contracts with the IPPs and an inquiry against wind mill projects was underway. The government will make savings of about Rs1.571 trillion in future payments to IPPs, which needs to be passed on to consumers forthwith.

Tanveer dispelled the impression that the process was being slowed down, stating that the FPCCI leadership was in close contact with the authorities concerned and was hopeful that the tariff would be reduced to Rs26 per kWh by next month.