Power generation: LCCI for increase in gas tariff

An equal tariff will ensure parity in the production cost between all the industrial units, says LCCI president.

LAHORE: Lahore Chamber of Commerce and Industry (LCCI) on Tuesday demanded that the government increase the price of natural gas being supplied to Captive Power Plants (CPPs) in order to create a level playing field, as the majority of industry has no access to gas. LCCI President Farooq Iftikhar said here that low priced gas to consumers with CPPs create a big difference in the production cost that affect the other industrial units, citing that industrial power tariff averaged at Rs16 per kilo watt hour (KwH), whereas CPP operators produced electricity at an average rate of Rs6 per KwH. Since electricity was a major input, he said, an equal tariff would ensure parity in the production cost between all the industrial units.

Published in The Express Tribune, August 21^st, 2013.

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