Govt Moves to Withdraw Rs146 Billion Power Subsidy to Domestic Consumers

The federal government has decided to withdraw Rs146 billion subsidy being given to the electricity consumers apparently to meet a key demand of the International Monetary Fund (IMF).

The government is currently in talks with a visiting delegation of the IMF for securing a bailout package to stave off a possible balance of payment crisis.

The IMF has asked Pakistan to end power and other subsidies and carry out much needed structural reforms in the power sector in a bid to resolve the crippling circular debt crisis.

It seems the government has conceded to the Fund demand as mdia reports said the Power Ministry has asked the distribution companies to work out uniform power tariff for the power domestic consumers of different categories.

Following the directives, an application has been moved to the National Electric Power Regulatory Authority (NEPRA) for determination of tariff for domestic consumers of different categories.

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The tariff for the consumers consuming up to 50 units per month has been sought to be determined at Rs 2 per unit while the Rs5.7 tariff has been sought for consumers consuming up to 100 units power every month.

The power tariff for consumers using 100 to 200 units power every month has been recommended at Rs8.11 while tariff for the consumers using electricity from 200 to 300 unit per month has been sought at Rs 10.70 per unit.

The tariff for consumers using 300 to 700 units per month would go up to Rs17.07 per unit and consumers using 0ver Rs700 units of electricity per month would have to pay Rs20.70 for per unit power.

The petition for tariff determination will be heard by the regulator on Nov 26 this month.