Pesco industrial power tariff 35 percent higher than Lesco

14 May, 2008

The industrialists of NWFP are paying higher electricity tariff than the commercial consumers of other seven power distribution companies in the country and particularly 35 percent high rate than Lahore Electricity Supply Company (Lesco).
This was stated by none other than President of Industrialists Association Peshawar (IAP) Nauman Wazir, while addressing a press conference at Peshawar Press Club (PPC) on Tuesday.
He said that according to the price list displayed on the official web-site of Water and Power Development Authority (Wapda) and National Electricity Power Regulatory Authority (Nepra), the tariff category for B-3 11/33 kv TOD-Peak of Iesco was Rs 6.99/Kwh; Gepco: 6.97; Fesco: 6.79; Mepco:7.48; Qesco: 7.59; and Lesco:6.88, while the price of the same category at Pesco is Rs 9.2 Kwh.
He said that the figures showed that the price of the electricity, distributed by the Pesco was 35 percent expensive than Punjab (Lesco). The IAP President termed the one-sided increase in the power tariff for the industries of NWFP was nothing but to discourage industrialisation in the province, although it generated more than 60 percent hydel power for the country.
Nauman Wazir pointed out that before March 2008, there was uniformed power tariff mechanism in the country, but the local power distribution company, on the advice of the Nepra, had introduced exorbitant tariff rate for the industrial units. "The industrialists of all important industrial estates, including Kohat Road Industrial Estate, Peshawar, Hattar (Haripur), Gadoon Amazai Industrial Estate, Topi and Hayatabad Industrial Estates, had rejected the increase after terming it a sheer injustice with the industrialists of the province," he said.
He said that disparity in the price of the power would discourage investment in the province, who had their mind set to shift their industries to Punjab, where the cost of production was below than NWFP. Nauman Wazir, who runs a steel unit, said that the law and order situation of the province had also deteriorated and two industrialists were already in the captivity of the abductors.
He said that the families of these abducted businessmen were receiving telephone calls for ransom. In such a situation, doing business in the province was almost impossible. He said the government did not enforce a uniform power tariff policy for the industrialists in all four provinces of the country, the NWFP industrialists would prefer to close down their units by the end of the current month.
To a question regarding the policy of the payment of 25 percent rebate on electricity consumption in the province, he said that only four applications had been filed with the provincial government, but none of them had received incentive so far.
"The traditional red tapism of the bureaucracy is creating hurdles in the way of the facilities," he said, and added that they would like to hold a meeting with Chief Minister Ameer Haider Khan Hoti and senior officials of the Nepra," he said.

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