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

Price hike not applicable to Karachi Electric Supply Company (KESC) customers.


Express October 14, 2011

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.

COMMENTS (31)

Faisel Hafeez | 10 years ago | Reply

@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.

My Comments | 10 years ago | Reply

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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