MDT for certain categories: power tariff to go up by Rs 5 per unit after elections

The federal government has decided to increase electricity Minimum Determined Tariff (MDT) by Rs 5 per unit for some categories of consumers soon after the general elections 2013, well-informed sources told Business Recorder. This agreement was signed between the Ministries of Finance, Water and Power and Petroleum on May 3, 2013. National Electric Power Regulatory Authority (Nepra) recently fixed MDT at Rs 13.64 per unit against the current tariff of Rs 11.90 per unit.
However, the government is charging Rs 8.80 per unit from consumers. The regulator raised tariff for Islamabad Electric Power Supply Company (Iesco) by Rs 4.80 per unit because of the increase in electricity generation cost and hike in expenditures of the company in the ongoing financial year.
"MDT at a higher level will be set for some categories after elections," an official of Finance Ministry told Business Recorder on condition of anonymity. Nepra, in its determination has increased the reference price of furnace oil for thermal electricity to Rs 75,000 per ton from Rs 65,000 per ton which would lead to a further rise in power tariff. Iesco would earn revenue of Rs 104.89 billion during the ongoing financial year 2012-13. For domestic consumers, the power tariff will surge by Rs 1 to 4.8 per unit. The consumers, who consume just 50 units a month, have been exposed to increase in tariff of Rs 1 per unit. Tariff is expected to be increased by Rs 2.30 for consumers who use 1-100 units a month whereas consumers using from 101-300 units a month may bear the brunt of a rise of Rs 4.80 per unit.
The tariff will be hiked by Rs 3 per unit for consumers who use 301-700 units per month and those consumers who consume more than 700 units a month would be liable to pay an additional Rs 1.50 per unit. For industrial consumers, the tariff has been increased by Rs 3.30 per unit and the same raise is for agriculture consumers.
The meeting which took the decision to increase power tariff soon after general elections also agreed that Finance Ministry will make timely payment of Tariff Differential Subsidy (TDS) during May 2013. It was also decided that PSO will immediately ramp up fuel supplies to build and maintains three day stocks over the next three days to supply to Gencos (Muzaffargarh and Jamshoro), Hubco, Kapco, the four cash customers, ie, AES Lalpir, Pakgen, Atlas and KEL together with one month credit facility. This will amount to delay in dispatch of 19000 MT.
Petroleum Ministry shall provide 42 mmcfd gas to Rousch power plant subject to provision of Rs 1billion by MoF through TDS. Generation will be maintained at 11,000 MW and 13,000 MW on May 11 and 12. The meeting also decided to supply 152 mmcfd gas to four IPPs, ie, Saif Power, Orient Power, Saphire Power and Halmore power.
The sources said Saif Power Limited and Orient Power Limited are being supplied 19 mmcfd gas each whereas Saphire and Halmore are getting 39 mmcfd gas each. An official in the Ministry of Water and Power told this scribe that the four IPPs have not been paid quarterly instalment as per the plan submitted to the Supreme Court. Saif Power runs its one unit on HSD for two days on the request of power purchaser on the hope that payment will be made on time, but the plant has not been paid a single penny.