ISLAMABAD: The government pays Rs143 billion per annum subsidy to domestic power consumers, who use upto 300 units of power, State Minister for Water and Power Chaudhry Abid Sher Ali told Senate Wednesday.

Answering the questions of Senators, he said the government provides Rs2.99 kwh (Rs14.66-11.67) subsidy mainly to domestic consumers.

The average tariff determined by National Electric National Electric Power Regulatory Authority (NEPRA) for Financial Year 2012-13 is Rs14.66 kwh. However the government does not increase tariff of domestic consumers.

He said for rest of the categories of consumers, the average increase was made by Rs2.17 and Rs0.72 from Aug 5, 2013 and 1st October 2013 respectively (total average increase Rs2.89).

It is pertinent to state that average tariff determined by NEPRA for FY 2012-13 is Rs14.66 kwh, however government notifies less tariff then determined by NEPRA. The difference is paid by the government as tariff differential subsidy.

He said no government can provide subsidy for long, as provision of huge subsidy hampers the economic development of the country, so the present government made aforesaid increased in tariff.

He said power production from Gudu Power Plant would commence from next month. As many as 6000 mw power would be added in the system Gadani within next few years.