Power consumers criticise tariff rationalization surcharge

Power consumers from domestic, commercial and industrial sectors have criticized the imposition of tariff rationalization surcharge, saying that the government has failed to pass on the benefit of reduced oil prices to them. Consumer Shahid Amin claimed that his electricity bill contained an additional Rs 6,000 as tariff rationalization surcharge for the current month. "My actual bill is Rs 21,000 and I have been burdened by an additional amount of Rs 6,000," he added.
The industrial circles are highly perturbed over the surcharge, saying that they are paying for the system inefficiencies of power distribution companies. It is nothing less than extortion on the part of power distribution companies. "We had been objecting to the cross tariff subsidy in the past but the present tariff rationalization surcharge is cross power distribution companies subsidy," said one angry industrialist requesting not to be named to avoid adverse consequences.
The power sector circles have pointed out that the power distribution companies have failed to meet the target of 100 percent recovery and restriction of losses at 12.5 percent set by the National Power Regulatory Authority. Instead the recovery of power distribution companies was not more than 87 percent and their losses are around 17.5 percent. "These system inefficiencies are being shifted to the consumers by the govt, which has put the power tariff on the higher end to Rs 14 per unit despite a drop in oil prices to $59 per barrel from $115 per barrel in 2013 with similar price per unit," they said.