Agriculture consumers: Power Division to charge flat rate of Rs 5.35 per unit

The Power Division has reportedly decided to charge flat rate of Rs 5.35 per unit from agriculture consumers'''' during peak and off-peak hours across the country for three months starting June 2018, well-informed sources told Business Recorder.
Giving the background, the sources said, agriculture consumers especially in Punjab had demanded that the federal and Punjab governments keep electricity tariff for agriculture sector unchanged as they cannot afford higher tariff.
They further argued that in case the normal tariff of Rs 10.35 per unit is charged during peak hours, it will affect agriculture output as farmers are unable to pay rates fixed for peak hours.
In April 2018, Pakistan Kissan Etihad (PKI) held a protest rally in Islamabad and demanded relief measurers for the agriculture sector. The Association wanted that the federal government should announce these incentives in the federal budget. The government, however, announced some incentives but ignored continuation of flat rate for the agriculture consumers.
The sources said Abbasi-led government placed this proposal before the federal cabinet in its last meeting which was held on May 31, 2018 and got approval for a flat rate for agriculture consumers.
The cabinet while considering issues of public importance, also discussed the electricity tariff for agriculture consumers'''' and decided that "the agriculture consumer, having peak rate and an off peak rate, will be charged at a rate of Rs 5.35 per unit for three months, ie, June, July and August 2018."
The former cabinet also decided that Tariff Differential Subsidy (TDS) arising out of this will be borne by the Government of Pakistan.
The PML (N) government could take credit for ensuring cheap electricity to the agriculture sector which will lead to better agriculture output of rice.
An official of Power Division told this scribe that the decision of former cabinet has been received and notification in this regard will be issued soon.
However, the official said that he does not have any idea of the total financial impact of this decision but that it would almost certainly be in billions of rupees as agriculture tubewells are used for water intensive crop, ie, rice.
During 2016-17 performance of the agriculture sector remained up to the mark and achieved growth of 3.46 percent against the target of 3.5 percent. This was possible by better harvesting of major crops through greater availability of agriculture inputs like water, agriculture credit and intensive fertilizers offtake.