ECC approves hike in power tariff for domestic consumers

ISLAMABAD: The Economic Coordination Committee of the federal cabinet on Wednesday approved a hike in power tariff for households consuming over 300 units per month.

A meeting of the committee, chaired by Finance Minister Asad Umar, reportedly decided that electricity prices would not be raised for domestic consumers using 300 units or less every month.

However, households that consume between 300 and 700 units per month will witness a rise in electricity prices of roughly ten percent or Rs1.18 per unit., and a fifteen percent increase will be introduced for those consuming above 700 units.

The committee reportedly also decided to provide relief in electricity prices for the agricultural sector, slashing rates by almost 48 percent from Rs10.5 to Rs5.5. They also discussed matters pertaining to the power sector and economic indicators.

It may be mentioned that the rise in power tariff is less than anticipated which implies that the government is wary of the adverse reaction from consumers, and has been approved keeping in view the recent decision regarding the recovery of dues.

The government has not released an official statement regarding the changes in power tariff structure, but Finance Minister Asad Umar is expected to announce the measures soon.

ECC deferred hike in power tariff 

During the last meeting on October 22, the ECC had deferred a summary for a massive hike in electricity tariff for the third time. The finance minister said that National Electric Power Regulatory (NEPRA) has proposed an increase of Rs3.98 per unit which cannot be approved.

He has said the power tariff cannot be increased until the recovery system is improved, and convened another meeting to discuss the recovery of arrears in the power sector.

He directed concerned officials to submit a detailed plan for improvements in the power sector particularly measures to increase recoveries and reduction of losses.

It was earlier anticipated that the ECC was expected to approve a surge in electricity tariff up to RS2.20 per unit which would generate an additional Rs200 billion annually for the government.

It is prime condition of the International Monetary Fund (IMF) to hike electricity tariff, in order to receive new bailout package requested by Asad Umar  to improve the financial situation in the country.

PM orders crackdown on power theft

Prime Minister Imran Khan had also directed for immediate steps to bring down the electricity prices and reduce additional burden on consumers due to pilferage and other damages in the power sector.

The prime minister, while chairing a meeting of energy task force, said it is unacceptable that common people suffer due to theft and mismanagement of others.

The meeting was given a detailed briefing on the energy sector, and informed that a comprehensive energy policy is being devised keeping in view the needs of the next 25 years.

Furthermore, steps are also being taken to reduce dependence on imported fuel and promote use of indigenous resources. The meeting was also told that technology is widely being used to improve supply and distribution of electricity.

It was also decided to launch a crackdown on power thieves. A special task force has been set up under Chief Minister Punjab and deputy commissioners at district level will oversee the crackdown against power theft.

PM Imran also directed the power division to present a detailed plan for ensuring the availability of quality transformers.