ISLAMABAD: Minister for Power Khurram Dastgir on Tuesday announced a hike Rs3.50 rupees per unit in the price of electricity.
Addressing a news conference along with Minister of State for Petroleum Musadik Malik in the federal capital, Dastgir said that this hike will be followed by another increase of Rs3.50 per unit from next month and another increase of 90 paisa per unit in October.
The power minister assured that although the Cabinet has approved the price hike, it will not have an impact on poor consumers who consume less energy.
He said the Cabinet had also decided to provide round the clock, smooth and uninterrupted power supply to dedicated industrial feeders to protect the livelihoods of people. “Similarly, minimum load-management would be carried out on mix-industrial feeders,” he added.
Dastgir acknowledged that consumers are suffering because of the fuel surcharge which is now also reflecting in power prices and said that the next three months will be difficult but prices will start coming down from November onwards as fuel prices are adjusted.
Speaking on the occasion, Minister of State for Petroleum Musadik Malik said that there will be no impact of the electricity price adjustment on 13 million connections which makes 45 per cent of the population.
Petroleum Minister Musadik Malik also expressed confidence that electricity prices would start coming down from October-November due to effective policies of the government.
“The incumbent government has promised that the fruits of its prudent policies will come to nutrition after almost 4-6 years. For now, there will be a visible gradual reduction in the electricity price, hop in the coming 3-4 months based on the government’s performance and decisions,” he added.
Explaining the elecricity tariff revision, Malik said it was the basic production cost of electricity that includes the fuel rate, losses, and other expenses faced in transmitting power to consumers. “Production and transmission costs are two basic components of the rebasing,” he emphasised.
He said that the revision was a regular process according to the law but the PTI government had stopped doing it after February 2021. “Non-rebasing does not mean that you (consumers) did not pay the price. Rebasing means to just make an announcement, as the current government has done today instead of using the fuel adjustment tool,” he said.
Moreover, Khurram Dastgir added that on the industrial end, the government has decided to provide both gas and electricity to five major export sectors on reduced rates on priority basis whereas an announcement to this effect will be made soon.
He added that the updated tariff will be close to that of regional countries in order to enhance the country’s exports.
Furthermore, the power minister said that the Cabinet was informed about the power shortfall during last month. “However, power generation has significantly jumped owing to increase hydel generation from Tarbela and resumption of 1100 MW from nuclear power plant K-2. Currently, hydel generation from Tarbela stands at 4500 MW,” he added.
The minister said the country’s economy had gradually been strengthening and the power supply had also witnessed ups and down.
The prime minister was personally monitoring the entire situation, he added.
Replying to a question, he said the incumbent government inherited Rs2467 billion circular debt which had been brought down by Rs214 billion in short term. Steps were also being taken to reduce line losses, he added.
Commenting on the previous PTI government, the minister said Imran’s government delayed main power projects including 1320 MW Shanghai Thar Coal, 1200 MW Trimmu RLNG, 1320 MW Jamshroo and 720 MW Karot hydropower to provide benefit to their blue eyed.
To another question, the minister said entire tunnel of Neelum Jhelum was being
de-watered to assess real issue while Guddu power plant was generating 460 MW.
