Relief for consumers: PM calls for power tariff cut by Rs0.46 per unit

Move likely to bring relief to consumers in their monthly electricity bills

ISLAMABAD:

Prime Minister Nawaz Sharif has directed the water and power ministry to propose an electricity tariff cut by Rs0.46 per unit as fuel price adjustment for the month of October.

According to an official statement from the PM House, the move is likely to bring relief to the consumers in their monthly electricity bills after it is cleared by the National Electric Power Regulatory Authority (Nepra).

The statement said the government has submitted details of fuel consumption and energy mix to Nepra, which will now conduct public hearing on the government’s submitted details and will notify the reduction in tariff accordingly.

The ministry’s spokesperson said the government has submitted its proposal for reduction in electricity tariff to Nepra which will decide on the issue in its meeting scheduled on Monday.  “Although it is the prerogative of Nepra to increase or reduce tariff but the PM has directed the water and power ministry to propose slashes in tariff in view of the recent fall in fuel prices in the market,” he said.

Apart from that, power plants will have to follow strict merit, which the PM has devised for electricity producer sas they should use efficient plants for electricity generation in order to save fuel consumption, he added.

“The water and power ministry is also following strict merit order for electricity generation to ensure efficient and economical fuel mix in the power generation to benefit the consumers,” he said.

He said inefficient plants consumed much fuel which caused hikes in tariff. “The above mentioned energy mix show that power producersare following merit for plants strictly,” he said.

Published in The Express Tribune, November 23^rd, 2014.