PM okays record 31 pc increase in power tariff

[Naveed Yaseen]

By Hanif Khalid
ISLAMABAD: Modifying the decision of the National Electric Power Regulatory Authority (Nepra) to increase the power tariff by 50-60 per cent, Prime Minister Syed Yousuf Raza Gilani has allowed a 31 per cent increase that may be notified any time.

"After a detailed review of the determination by Nepra, the prime minister, in consultation with Finance Minister Syed Naveed Qamar and Minister for Water and Power Raja Pervaiz Ashraf, allowed a 31 per cent increase in power tariff," an official disclosed on condition of anonymity.

"It is for the first time in the recent history of the country that power tariff is being increased by 31 per cent," he remarked.

The official disclosed that after the notification of the new tariff, unlike the past practice, a consumer would pay the price of electricity in accordance with the rate of the slab in which his power consumption would fall. He said that if the consumption of power by a consumer fell in the third slab, he would be charged for the whole consumption at the rate of the third slab and would not be allowed to benefit from rates of lower slabs. "Besides 31 per cent increase in the power tariff, the new formula will put more burden on consumers," the official warned. "There will be no increase in power tariff for consumers who consume only 50 units but those who consume more than 50 units will now have to pay huge bills," he added.

The official said that currently consumers were charged Rs 3.08 per unit for first 100 units, Rs 4 per unit for next 200 units and Rs 6.53 per unit above 300 units. But after notification of the new tariff and formula, a consumer who would consume more than 50 units of power would be charged the rate of the last slab for the whole consumption, he elaborated.

"The notification was to be issued on Friday but now it will be issued in a day or two," the official said. "The new formula and 31 per cent increase in power tariff will help reduce subsidy and overcome the budget deficit. During the financial year 2007-08, the government gave Rs 113 billion subsidy on power," the official added.

The official revealed that line losses and power theft in Karachi had reached 40 per cent, whereas it was 11 per cent for the Islamabad Electric Supply Company and 13 per cent for the Gujranwala Electric Supply Company.

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