The Ministry of Water and Power on Wednesday moved to increase power tariff by Rs 1.25 (27.5 per cent) to Rs 1.68 (12 per cent) per unit across the board despite recent violent protests in various parts of the country against unscheduled power cuts.
Officials cited a notification by the Ministry of Water and Power on Wednesday after consultations with the Ministry of Finance, also obtained by the Business Recorder, saying that the increase will be effective from May 16, 2012. According to the new tariff, power rates even for lifeline consumers using just 50 units a month by 13 paisa per unit or 6.5 percent higher than the existing rate.
Although, the prime minister had decided in the recent Energy Summit held in Lahore to declare people using 100 units or below as lifeline consumers. The new notification, however, disregards this decision and defines them as those who used up to 50 units.
The price for consumers who use up to 100 units in a month has been hiked by 27.5 per cent from Rs 4.54 per unit to Rs 5.79 per unit. Tariff for consumers using 200 units (101-300 units) in a month, has been raised by Rs 1.27 paisa per unit. Rates for the consumers using 400 units in a month (301-700 units) has been hiked by Rs 1.25 per unit where the consumers who use more than 700 units a month, will have to pay an additional Rs 1.68 per unit. Their new tariff will be Rs 15.5 per unit against the existing tariff of Rs 13.82 per unit.
For peak load requirement exceeding 20KW- tariff of Time of Day (ToD) peak, has been raised to Rs 13.99 per unit from Rs 12.74 per unit while ToD off-peak tariff will be Rs 8.22 per unit against current tariff of Rs 6.97 per unit. According to the existing tariff, government is extending subsidy of Rs 1.22 per unit, but after the implementation of new tariff, the subsidy will be Rs 3.08 per unit as average tariff has been increased to Rs 11.91 per unit from Rs 8.83 per unit.
"Currently, the subsidy is Rs 127 billion per annum, but it will be increased to Rs 230 billion after the new tariff," the sources added. However, the government also decided to raise power tariff by 2 per cent each month to eliminate the subsidy within a year.
For May this year, Pakistan Electric Power Company (Pepco) had estimated Rs 47.576 billion collection. However, the collection will be around Rs 43.44 billion with stuck up arrears expected to be around Rs 8.477 billion, totalling Rs 51.917 billion. After retention of Rs 8.357 billion, total receipts will be Rs 43.56 billion. The sources said that the Ministry of Water and Power had written a letter to the Finance Ministry, calling for the release of Rs 7 billion to enable PSO to import furnace oil.
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