News
Saturday, September 18, 2010
Power tariff increased for all consumers* Per unit price increased by 21 paisas for consumers with less than 50 units
* Price for above 50-unit category at Rs 4.8 now
* Rs 6.180 per unit price for industrial consumers
By Zeeshan Javaid
ISLAMABAD: The federal government has increased electricity prices by 21 paisas to upto Rs 6.18 per unit for all consumers, except for those living in Khyber Pakhtunkhwa.
According to a notification issued by the Federal Water and Power Ministry, the price hike will be applicable to all types of electricity consumers (lifeline, domestic, industrial, agriculture).
National Electric Power Regulatory Authority (NEPRA) sources told Daily Times that prices of upto 50 units had been raised by 21 paisas for domestic consumers and now the new price per unit was Rs 2.
On the other hand, consumers who use more than 50 units will have to pay Rs 4.80 per unit.
Similarly, the government has increased the tariff from Rs 1.47 to Rs 6.18 per unit for industrial consumers.
Owners of agriculture tube-wells who consume less than 50 units, will now have to pay Rs 3.86 per unit. If the consumption is more than 50 units, then the per unit price will be Rs 9.
If monthly consumption is between 100 to 300 units, then consumers will have to pay Rs 11 per unit.
Sources said that consumers in Khyber Pakhtunkhwa had been exempted from the increase in electricity prices due to the recent flood devastation in the province.
The Pakistan Electric Power Company (PEPCO) had earlier sought a 48-percent increase in power tariff to bridge the Rs 180-billion gap in power production costs and the money paid by utility consumers, the sources said.
“This demand had put the economic managers in a difficult position. They explored all possible options, including tariff restructuring through elimination of subsidies, to bridge the gap in power production costs and tariff recovery,” the sources said.
Other options to overcome the Rs 180 billion deficit include introduction of major reforms to eliminate line losses, electricity theft and inefficiency in the system through investment to upgrade obsolete equipment. The government is likely to introduce a mix of reforms, such as partial increase in power tariff, reduction in all kinds of losses and elimination of subsidies can help reduce the Rs 180-billion gap.
Courtesy www.dailytimes.com.pk