The government on Friday announced flat rate of Rs 11.97 per unit of electricity for 'additional consumption' by consumers, aiming at proper utilization of power generation, facilitating the general public in cold weather and giving a boost to industrial sector.
Power Minister Omar Ayub Khan said this while addressing a press conference here on Friday.
Elaborating the term 'additional consumption,' he said meter reading would be tallied with the last year data of same month, following which extra units' usage would be charged as per the flat rate. "For example, a consumer used 100 units during the month of November in 2018 and now he/she used 110 units in November 2019, the flat rate will be applicable on 10 additionally consumed units."
He announced flat rate of Rs 11.97 per unit for additional usage by the electricity consumers during four months of the winter i.e. from November to February. He said the step has been taken for proper utilization of power generation, facilitating the general public in cold weather and giving a boost to industrial sector, adding that the measures are being considered to give relief to industrial and other consumers.
He said a package of subsidized rates will also be introduced for domestic and commercial consumers. "We have recently got approved an incentive package from the federal cabinet under which industrial and other three 'time of use' consumers will be given a flat rate of Rs 11.97 per unit during the four-month period," said Minister for Power Omar Ayub Khan.
He said electricity consumers were given a subsidy of Rs 226 billion in budget. He said around 31.19 percent consumers, including 4.22 percent residential 'time of use' consumers and 4.6 percent commercial 'three phase' users, besides 22 percent industrial clients, would get benefit of this package.
The minister said a special subsidy was given to agricultural consumers using less than 300 units of electricity.
Omar Ayub Khan said as many as 1,800 to 2,000 MW electricity was expected to be consumed under the package, which would provide a better option to the public to use electricity for the heating purpose during winter, instead of gas and enable industries to operate round-the-clock.
The minister said the government is working on generation of inexpensive electricity and accordingly the Alternative Energy Development Board had approved establishment of 11 wind power plants of 500 MW, which would cost Rs 6.30 per unit. He said the government had planned to generate around 8,000 MW power through renewable energy resources by 2025; regretting that the previous regime did not give any attention on this side but it kept on encouraging production of expensive electricity.
Answering a question, the minister said the government is going to advertise the incentive package in national dailies with a complete price-comparison chart of all category consumers, so that they could assess advantages of the package
Answering a question about settlement of the Karkey dispute, Omar Ayub said the issue was resolved amicably. "There is 'zero cost' on its settlement and it has no expense on us."
Secretary Power Division Irfan Ali said the government is making tireless efforts to check the power pilferage and electricity load-shedding is observed only on those feeders where line loses are excessive.
Normally, he said, in winter season electricity demand witnessed a drastic dip even to 8,000-9000 MW per day in January, while installed capacity remained excessive and its benefit should be given to the public and industrial sector.
He said it would be a win-win situation for both consumers and power producers as in industrial sector "more consumption means more economical production." Besides, it would help bring down circular debt, and give a boost to power and economy sectors, he added.
Copyright Business Recorder, 2019
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