The steel melters have urged the government to withdraw Rs 3.63 per kilowatt hour surcharges on the electricity bill as it has wiped out the relief of Rs 3/ per unit of electricity provided by the Ministry of Water and Power for the industrial sector in line with the commitment of Prime Minister Mian Nawaz Sharif.
According to the Pakistan Steel Melters Association, the steel melting furnaces utilise electricity on very large scale as its raw material. Though it is the largest revenue generating sector in Pakistan till to date but is in doldrums, because of cheap imports from China. The Prime Minister was very kind and thoughtful to provide relief of Rs 3/ per electricity unit to the industry to be competitive. However, unfortunately, the Ministry of Water & Power has added Rs 3.63 per kilowatt hour surcharges and then adjusted the announced Rs 3 per kilowatt hour reduction in the industrial tariff with the fuel price adjustment.
The presumed price of furnace oil was Rs 65,900 per ton for the fuel price adjustment in 2015 that has fallen to Rs 21,226 per ton. Therefore, a new adjustment will definitely be higher than Rs 3.00. As such, there would be no reduction at all in the industrial tariff.
It is not less than extortion because of the system inefficiencies arising out of dues recovery, line losses, loans for delayed payments to independent power products and penalties. The Economic co-ordination Committee had approved to reduce the basic industrial tariff by three rupees per unit.