No increase in electricity price for consumers up to 200 units, says Power Division

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Power Division officials have said that the government will give a subsidy of Rs158 billion to power consumers and there will be no increase in the price of electricity for consumers up to 200 units.

Chairman National Electric Power Regulatory Authority (NEPRA) heard the government’s request to increase the basic price of electricity by Rs7.5 per unit, in which the Power Division briefed NEPRA.

NEPRA officials said that the main reason for the increase in tariff is the depreciation of the rupee and capacity payments, it is the job of the government to increase how much for which slab, it is a political and administrative decision that the government has to make.

NEPRA member Rafique Sheikh asked, “What is the law that prescribes subsidy to the government? Which law gives the government the power to give how much subsidy to which slab?”

On the question of NEPRA member, power division officials said that the government will give a subsidy of Rs158 billion to power consumers and there will be no increase for consumers up to 200 units.

On this, NEPRA chairman said that giving subsidy to the protected is burdening other consumers.

Power Division officials said that 40 percent of consumers in the country are living below the poverty line, the government is providing subsidy to these power consumers, the government is giving subsidy to 90 percent consumers.

Member NEPRA Rafique Sheikh said that what rates are going on in the world and what is the situation in Pakistan, representative APTMA said that only one percent increase in tariff has a negative impact on exports, commercial and billboards are being given commercial tariff, if they go to alternatives, they have to pay Rs 300 per unit, power companies start load shedding when their losses are high or recoveries are low. During the recent rains, 22,000 meters of electricity were burnt, how were they burnt?

NEPRA member said that the Power Division should make an economic case of subsidy for power consumers, giving subsidy to domestic consumers and making the industry sit.

Later, NEPRA completed the hearing on the issue of increase in the price of electricity by Rs7.5 per unit and reserved the decision, which will be sent to the federal government after reviewing the details and the federal government will issue a notification to increase the price of electricity.