LAHORE: The federal government on Friday, decided to carry on with electricity surcharge of Rs2.35 per unit for all electricity consumers, reported a private news outlet.
In order to ensure debt servicing requirements of the power sector, subsidy to poor consumers and investment required for powers sectors expansion, the Ministry of Energy has requested National Electric Power Regulatory Authority (Nepra) to allow the continuation of three surcharges. These surcharges will allow the flow of funds of more than Rs100 billion.
The continuation of the three surcharges-tariff rationalisation surcharge, financing cost surcharge and Neelum-Jhelum surcharge- would deprive the consumers of a reduction in their bills but would not, however, increase electricity cost.
The Neelum-Jhelum surcharge and the financing cost surcharge will be charged at a flat 10 paisa per unit and 43 paisa per unit respectively, whereas the tariff rationalisation surcharge averaging around 1.82 per unit will vary based on the system losses and other inefficiencies for different consumer categories and distribution companies.
Earlier in March 2014, the government imposed surcharges despite the regulator determining an average reduction in tariffs of Rs2.35 to Rs2.50 per unit. The action was challenged in court, with the regulator including the surcharges as part of the tariff at that time. Now the government is planning to continue these surcharges as part of “re-determinations of tariff for Discos for 2015-16”, reported the private news outlet.
