Federal Secretary for uniform electricity tariff across Pakistan

TEXT: In response to the directives issued by Prime Minister Mohammad Shehbaz Sharif, Federal Secretary for Ministry of Energy (Power Division) Rashid Mehmood Langrial visit Karachi Chamber to hold a meeting with the KCCI Leadership prior to a meeting scheduled with Prime Minister on same day at Dockyard.

After extensive discussions over electricity related issues, particularly the tariff structure, being faced by the business & industrial community, the Federal Secretary stated that effective strategies will be devised to provide uniform electricity tariff across Pakistan.

He said that during winter season, the marginal cost for incremental electricity consumption will be brought down to Rs20 per unit so that maximum number of people could be encouraged to use electrical equipment instead of gas as the country was already facing dire shortage of gas due to rapid depletion of gas reserves.

The Power Secretary assured that the pending payment of Rs7 billion against consumption of incremental units will be cleared at the earliest possible time whereas the government will also review marginal cost of incremental unit.

In response to concerns expressed over expensive electricity being produced by Independent Power Producers (IPPs), he assured that all such agreements will be reviewed and it will be ensured that the new agreements with IPPs are finalized in such a manner which ensures minimum generation cost and lowest power tariff.

Referring to concerns expressed over surcharge under Power Holding Loans (PHL) being taken by KE which is purely due to the inefficiencies of other DISCOs but unfortunately, KE consumers are also compelled to pay PHL, the Power Secretary assured to look into this matter with a view to minimize the burden on KE’s industrial as well as domestic consumers.

Replying to KCCI’s worries over Rs43.6 billion which KE has to return to its consumers under Claw Back Mechanism but the utility service provider was unwilling to do so as they attained Stay Order from the Honorable High Court, the Secretary Power said that he would take up this matter with KE so that it could be amicably resolved.

It was pointed out that NEPRA launched CTBCM but the policy for wheeling charges has not been finalized. In this scenario, the CTBCM will not be able to achieve its goals. The Secretary Power said that work is underway in this regard and the policy for wheeling charges will be finalized soon.

The Federal Secretary, while reiterating government resolve towards ease of doing business, said that National Power Policy will also be reviewed in light of the issues being faced by the business community of entire Pakistan.

Copyright Business Recorder, 2023