Power tariff may go up by Rs4 per unit

If interim govt doesn’t increase tariff, it’ll have to give Rs400b subsidy.

Zafar Bhutta April 02, 2013
If interim govt doesn’t increase tariff, it’ll have to give Rs400b subsidy. PHOTO: FILE


The caretaker government is likely to increase power tariff by more than Rs4 per unit for all consumers after the National Electric Power Regulatory Authority (Nepra) raised tariff for the Islamabad Electric Supply Company (IESCO).

The tariff increase will be implemented following the approval of caretaker Prime Minister Mir Hazar Khan Khoso.

“If the caretaker government does not increase the tariff, it would have to give Rs400 billion subsidy to power consumers,” sources told The Express Tribune.  The PPP government had also given a Rs254billion subsidy against the allocated amount of Rs180billion. So, officials said the government had no money to inject into the power sector for subsidy as the finance ministry has already refused to bridge the gap.

The power regulator has been withholding the decision to increase power tariff at the behest of the Pakistan Peoples Party-led government which wanted to appease the voters in the upcoming elections. Petitions of power distribution companies (Discos) have been pending before Nepra since June 2012 but it did not decide to raise the tariff due to political compulsions.

According to sources, the current average power generation cost is Rs11.99 per unit, whereas consumers pay only Rs8.89 per unit. The government pays the Rs3.10 per unit tariff differential in subsidies.

An official of the power ministry said that IESCO was the most efficient power distribution company and its tariff was the benchmark across the country. According to the current policy, the IESCO tariff is implemented for the consumers of all Discos.

“If the government takes this tariff as benchmark, consumers across the country will be facing an increase of Rs4.80 per unit,” the officials said.

If approved, domestic consumers consuming 50 units per month will face an increase of Re1 per unit, Rs2.30 for 100 units per month, Rs4.80 for 101-300 units, Rs3 for 301 to 700 units and Rs1.50 per unit for domestic consumers using over 700 units per month.

Published in The Express Tribune, April 2nd, 2013.


Asad | 9 years ago | Reply

@Naseer Ahmad: Really? Are you absolutely sure? Because by definition my family is from the 'elite' class and we have to pay about 500,000 Rs./month for power at home and office. Where's the subsidy?

Voice of Pakistan | 9 years ago | Reply


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