Fuel adjustment: Consumers to pay Rs3 per unit extra for August
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)
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@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.
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.
down with the status quo parties!!!!
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.
@Faisel Hafeez: dear that's the economic rule to meet the demand increase the product price lest face the shortage.
Perhaps everyone should move to Karachi; PPP will have more voters - well thought haha
This is not price hike...this is only an adjustment.
Hope it sounds better like that!
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..
Thats criminal for any ordinary citizen. Why Pakistan is using furnace oil which to the best of my knowledge is not used in India ?
They will it make it so expensive that only affordable mean will to get electricity will be KUNDA.
only Rs3.40/unit hike?????
What about the corruption in the power department? There can be no power theft without the consent of WAPDA employees.
wow .. just thinking .. I pay aprrox. INR Rs 7 / unit of eletricity in Jammu ..
Please please next time 10 time think then give vote
What about electricity theft? No increase in monthly private charges on those Kunda System. NEPRA supports KUNDA SYSTEM.
Ohhhhh sadistic government employees must be happy now.
@Faisel Hafeez: what you say would be funny were it not be so tragic!
This is the most ingenious approach to end Load Shedding. Make Power so expensive that people will voluntarily opt for Load Shedding !
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.
The price hike will not be applicable to Karachi Electric Supply Company customers POOR KESC.
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
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...!
Have mercy on middle class people, who are living hand to mouth. Before its too late for all these politicians.
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?
bravo, democracy is stabilizing. This hike only indicates that how much the politicians are bold and confident now.
NEPRA should not allow power increase to KESC till they improve their service delivery
Should we all commit suicide or emigrate?