ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday took notice of the electricity tariff hike that penalises consumers for exceeding 200 units, directing the Power Division to propose a solution for inflated bills that persist for up to six months after a single unit crosses the limit.
The committee, chaired by MNA Junaid Akbar Khan, discussed audit issues related to the Ministry of Energy. The chair expressed concern over the extended penalties imposed on consumers who exceed the 200-unit threshold, urging for an explanation and corrective measures.
The power secretary informed the committee that 58% of electricity users fall under the 200-unit slab, with subsidised rates now benefiting 18 million consumers, up from 11 million. He acknowledged the issue of high bills persisting for months after consumers breach the 200-unit threshold once.
He explained that raising the slab limit would require a higher subsidy and added that the government plans to reform the system by 2027, shifting to direct subsidies using BISP data.
During the meeting, officials briefed the committee on the status of Independent Power Producers (IPPs), revealing a significant increase in installed capacity over the years.Â
Committee member Shazia Marri questioned why provinces like Sindh and Khyber-Pakhtunkhwa still face up to 16 hours of load-shedding, despite a surplus in electricity generation.
The Energy Ministry also reported that the installed capacity of IPPs increased from 9,765 MW in 2015 to 25,642 MW in 2024, with annual capacity payments rising from Rs141 billion to Rs1.4 trillion.
Committee member Syed Naveed Qamar challenged the Power Division’s claim that coal is the primary driver of high electricity costs, while Junaid Akbar raised doubts over the reported 200% increase in electricity generation from bagasse, calling the figures unrealistic.