The Ministry of Water and Power has nullified the impact of Rs 3/kWh relief to the industrial consumers that was announced by the Prime Minister Nawaz Sharif in January 2016 and notified by the ministry on February 4, 2016 that was effective from 1st January 2016.
The industry sources said the prime minister had desired Rs 3/kWh reduction in electricity charges for the industrial consumers but the ministry had included any downward revision of Fuel Price Adjustment (FPA) in or after January 2016.
The FPA is the amount, which the consumes pay in advance to the distribution companies and it is calculated by the Central Power Purchase Authority every month, which is followed by a petition before the NEPRA for determination and notification of the rate of FPA.
The industry sources said the ministry, as a matter of fact, flouted the announcement of relief in electricity tariff in connivance with the Finance Ministry and ultimately put the industry to a dismal state of affairs and the government has no option but to offer Rs 180 billion to revive the viability of major industries, especially the export-oriented one. They further added that a timely implementation could take the industry out of sluggish mode, particularly due to the high cost of doing business against the regional competitors.
"Prime Minister was kind enough to announce a relief of Rs 3/kWh in power tariff but the concerned ministries linked it to the Fuel Price Adjustment that nullified the positive impact," said one power sector expert.
He said the ministry has been adjusting this relief against Rs 3.65 per kWh FPA and failed to bring down industrial tariff in line with the desire of the prime minister.
The industry circles have urged the prime minister to take notice of the negation of his direction by the concerned ministries and bring down the industrial tariff in line with the regional competitors.
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