ISLAMABAD: Federal Minister for Energy Hammad Azhar on Friday stated that the federal government has determined to extend the ability tarrif because the round debt of Pakistan witnesses a hike.
Azhar, accompanied by State Minister for Information and Broadcasting Farrukh Habib at a press convention in Islamabad, stated that the rise of Rs1.39 within the energy tariif shall be relevant within the nation from November 1.
“Since we are now capable to generate enough electricity, we want to increase the demand. We introduced an industrial package last year and saw a 15% increase in demand as it became successful,” said Azhar.
“Meanwhile, we have also seen a 6-7% increase in the demand for electricity as the peak hour charges for the industrial sector have been removed,” he added.
The minister stated that protecting in view the success of this package deal, the federal government determined to introduce one other package deal — referred to as the seasonal electrical energy package deal — below which shoppers who use an additional unit in comparison with their final yr’s utilization will get an additional low cost.
Shedding gentle on additional steps, he stated that the federal government has closed previous era firms (gencos), whereas the National Electric Power Regulatory Authority (NEPRA) has additionally revised its goal from 15% to 13%.
“Despite all this, there is a difference between Rs1.5 to Rs2 in the rate at which the government is purchasing and selling electricity, and this is the reason behind the surging circular debt,” he stated.
“A major chunk of circular debt is because of capacity payments. And because of the wrong decisions taken by the previous governments, we have to increase the power tariff,” he stated, including that the federal government had proposed to NEPRA that the ability tariff be elevated by Rs1.49 per unit.
“This increase in power tariff will not be applicable to the lifeline and domestic consumers — who use less than200 units of electricity — hence, this increase is not applicable on the 46% of the consumer base,” he clarified.
Moreover, this won’t have an effect on the seasonal electrical energy package deal or the commercial package deal.
Worldwide fuel disaster
Azhar stated one other main subject the nation is going through is said to the scarcity of fuel.
“Currently, the entire world is facing a gas crisis — whether it’s a developed country or an under-developed country — because the supply of gas has been affected due to COVID-19, while prices also surged,” he added.
“Pakistan, however, did not face such an intense gas crisis,” the minister stated, including that the federal government is engaged on the North-South Gas Pipeline Project with Russia.
“We are also planning to change the law to provide LNG to domestic consumers,” he said. “The government will not curtail demand without ensuring proper gas supply.”
He continued: “In order to resolve the fuel disaster subject, we’re blocking all ongoing and future fuel schemes.”