Electricity woes: Power tariff increased despite court’s stay

An average increase of 16% in tariff in a desperate move to minimise power subsidy.


Zafar Bhutta May 16, 2012

ISLAMABAD:


The government has put an additional burden of Rs88 billion per annum on electricity consumers, despite a stay order from court, through an average increase of 16% in tariff in a desperate move to minimise power subsidy.


Undeterred by the stay order from the Lahore High Court, the Ministry of Water and Power has issued a notification, increasing power tariff by 16% which will be applicable across the country, including Karachi.

However, lifeline consumers using up to 50 units per month would be exempted from the tariff increase, said a senior ministry official.

Earlier this year, the ministry had tried to get a notification for a 4% tariff increase vetted from the law division, but the law ministry refused to examine it due to the stay order. The government had increased power tariff on May 6, 2011, but it was challenged in the court. Sources said that the Ministry of Water and Power increased the tariff based on rates notified on March 15, 2011 following advice of legal gurus.

Sources believed that the new tariff had been notified in haste in a bid to issue electricity bills of April with new rates and make additional collection. “This is a novel way of enhancing power tariff by ignoring the stay order,” an official said, adding this could also be challenged in the court.

“The tariff rate notified on March 15, 2011 was Rs7.58 per unit which has been enhanced to Rs8.83 per unit with an average hike of Rs1.25 per unit,” the official said, adding it was for the first time that the water and power minister did not get the notification vetted from the Law Division.

Despite repeated attempts to get comments, the spokesman for Joint Secretary Power Zargham Khan did not respond to calls.

The tariff hike will ease the massive subsidy burden, which is feared to reach Rs396 billion this year.

According to the notification, tariff for domestic consumers using up to 100 units per month has been raised by Rs0.71 to Rs5.25 per unit, tariff for consuming 101-300 units has been increased by Rs1.07 to Rs7.93 per unit, for slab of 301-700 units the tariff has been enhanced by Rs1.70 to Rs12.35 per unit and for consuming over 700 units the rate has been increased by Rs2.12 to Rs15.41 per unit.

Power tariff was also increased by Rs2.08 per unit for commercial consumers including markets, plazas, offices and subsidiaries of small business units, by Rs1.96 per unit for industrial consumers and Rs1.61 per unit for agricultural tube wells.

Commercial consumers with a sanctioned load of 5 kilowatts will be paying Rs15.08 per unit and those with load exceeding 5 kilowatts will pay Rs10.22 per unit. Industrial consumers using up to 5 kilowatts will have to pay Rs10.86 per unit while those consuming 6 to 500 kilowatts will pay Rs9.55 per unit.

Published in The Express Tribune, May 17th, 2012.

COMMENTS (7)

Nadeem | 11 years ago | Reply Coal reserves in Thar are an excellent and cheap source of electricity, if utilized properly, they can reduce the circular debt in the long run, reason why the government keeps on increasing electricity rate. Unfortunately government won't be interested in it since it does not fill their pockets. I think we all know that most of the problems that our country faces is not due to the lack of resources but rather the lack of honest leadership.
Ahmer Ali | 11 years ago | Reply

Rescinding the Supreme Court's orders has been PPP's government's favorite hobby/attitude and it has been in the near past by convicted ex-PM Gillani.

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