Tied to managing circular debt: Impact of power tariff rebasing not assessed as yet: govt

ISLAMABAD: Minister for Power Khurram Dastgir Khan on Wednesday said exact impact of rebasing of electricity tariff on consumers has not yet been finalized as it is linked to the approach to manage power sector circular debt.

Responding to a question during a press conference convened to comment on recent remarks by Israel on human rights situation in Pakistan, the Minister said that he would share details of power sector issues with the media within a couple of days wherein Circular Debt Management Plan (CDMP) will also be shared.

“We are receiving very good statistics about the circular debt as the government has controlled circular debt flow vigorously. A big payment was made to the IPPs and Government Power Plants (GPPs) at the end of June 2023 due to which we are expecting a very good numbers of circular debt,” he added.

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The Minister argued that once circular debt numbers are finalized as per indications, and then need for an increase in electricity tariff would be minimal.

The Minister said, he is not aware of exact demand from International Monetary Fund (IMF) about increase in base tariff of electricity except the Finance Minister’s statement on national television.

He said, base electricity tariff has not been increased since September 2022 whereas impact of QTAs and FCAs was also minimal.

Responding to another question, Minister said that stern action will be taken against officials of Islamabad Electric Supply Company (Iesco) if it is proved that bills of June 2023 were sent without taking a reading.

The Minister regretted issues in electricity supply during the last days of June 2023 arguing that there was massive demand in the country due to scorching heat. He said, 76 per cent feeders where losses are 20 per cent are load shed free.

The Minister for Power said the feeders of Category I and II where recovery rate is more than eighty percent are facing less than two hours of load shedding. He expressed satisfaction over the electricity generation saying Tarbela is running at full capacity.

The Minister for Power said Pakistan at present is faced with many challenges on the economic and foreign policy fronts in addition to energy sector but expressed confidence that the people will elect a strong government in the next general elections which will address these problems and put the country on the path of development.

In reply to another question, the Minister said former Prime Minster, Nawaz Sharif will run PNL(N) election campaign, adding that after elections, it would be decided as to who would be the next Prime Minister.

“PML-N Quaid Mian Muhammad Nawaz Sharif will lead the election campaign of the PML-N. Injustices done to former Prime Minister should be reversed by the judiciary,” continued Khurram Dastgir, adding that the people should reject those elements in the elections who attack the state and invite other countries to interfere in the internal matters of Pakistan.

He pointed out that military installations and Radio Pakistan’s building were attacked on May 9 and the law will take its course against those who were behind these incidents.

The Minister condemned Israel was illegal occupation of lands of Palestinians for new settlements.

Linking former Prime Minister’s connections with Israel, he said that PTI’s inclination toward Israel began a few years back when a PTI MNA had sought ties with Israel. He also questioned the inclination of some US Congressmen towards PTI.

Copyright Business Recorder, 2023