Gilani rejects 4% increase in power tariff

Prime minister observes masses cannot be burdened with further inflation.


Express October 31, 2011

ISLAMABAD: Prime Minister Yousaf Raza Gilani has rejected a summary recommending a four percent increase in power tariff, Express 24/7 reported on Monday.

The summary had been sent to the prime minister by the Water and Power Ministry through the Ministry of Finance.

Sources said Gilani, while rejecting the summary, observed that the masses cannot be burdened with further inflation.

The prime minister suggested that financial losses in the power sector should be compensated by bringing improvements in the system.

It had earlier been reported that power distribution companies had filed an application with the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs1.76 per unit in electricity tariff under the fuel price adjustment mechanism.

According to the application, average electricity production cost remained at Rs5.63 per unit in September while approved reference price for the month was Rs3.87 per unit, leaving a difference of Rs1.76, which should be allowed to recover.

COMMENTS (5)

Samir | 10 years ago | Reply absurd politics. Prices need to go up.
a | 10 years ago | Reply

Increase the price because if you don't we'll pay even more in the future. There is no such thing as a free lunch. Interest payments on that circular debt will come out of power consumer's pockets.

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