KARACHI: It has become quite difficult to determine the expected raise in power tariff. On the cards, there are fuel component adjustments, rise in base tariff, etc. The Central Power Purchasing Agency is also seeking further increase besides already existing increase of almost 40% taxes and surcharges, which are over and above the increase in tariff, said Ateeq Ur Rehman, an economic and financial analyst.
We have hydel generation, coal-fired power plants, gas-based power plants, electricity generation from RLNG, nuclear sources and electricity generated from wind and other sources. All these segments are seeking an increase per unit.
As a matter of fact this all will push electricity tariff to a record high, whereas we are already highly taxed electricity consumers in the region. A further increase will crush millions of households that have been struggling to make ends met because of repeated increase in energy prices, hike in petroleum prices and ballooning inflation, said Ateeq.
Moreover, further raise in energy prices will be painful and unbearable for common man. It is suicidal. Government should scrap the increase in power tariff and let stakeholders share the burden of their inefficiency and theft. They should excuse the household consumers, and marginalized and the low income groups.
He added that one failed to understand that after adding different taxes and surcharges on consumer bills like adding back Quarterly Adjustment, Fuel Charges Adjustment, Electricity Duty, General Sales Tax, 3% Further GST, Income Tax, TVL Fee, Government Charges, etc, why there is still a need of Additional Government Charges? They need pricing and governance reforms, he suggested.
Copyright Business Recorder, 2021