Last update: Sat, 13 Feb 2016 05pm

Nepra to notified new tariff

Prime Minister Nawaz Sharif has announced Rs 3 per unit reduction in base tariff for industrial sector to relief to the industrial sector and accelerate economic development. The new tariff will be applicable for the electricity consumed in January 2016 and billed in February 2016. According to an official statement issued by the Ministry of Water and Power said that Prime Minister announced the relief for the industrial sector at a function of FPCCI at Karachi.

The Ministry further stated that currently, industrial sector is charged with an average tariff of more than Rs 14 per unit, which has higher peak rates and lower off-peak rates. After reduction in the base tariff, all the current rates will become lower by an average of Rs 3 per unit with an average tariff of around Rs 11 per unit. According to details, the Prime Minister had specially directed the Ministry of Water and Power to work out special relief for the industrial sector in terms of electricity tariff. The Government has already notified subsidised rate for agriculture at Rs 10.35 per unit during peak hours and Rs 8.80 during off-peak hours. Domestic consumers up to 300 units are also enjoying subsidised rates of Rs 2, Rs 5.79, Rs 8.11 and Rs 10.20.

Currently NEPRA is finalising tariff determination for all the Distribution Companies (DISCOs). During these proceedings the DISCOs will submit the case for providing such relief for the Industrial sector which provides the employment opportunities and impetus for economic growth. The new tariff will be notified after approval by NEPRA.

It may be noted that government has already initiated a large number of new electricity generation projects of different fuel mix which will further bring down the tariff for all consumers including the industrial consumers. The power sector has for the first time achieved record revenue collection of 92% during the year from December 14 - November 15 and reduction of 1% in Transmission and Distribution Losses from 19% to 18% during the same period, bringing a benefit of more than Rs 60 billion to the sector overall income.-PR

Copyright Business Recorder, 2015