Power Minister urges provinces to clear outstanding dues

ISLAMABAD: Federal Power Minister, Sardar Awais Ahmed Khan Laghari has written letters to the chief ministers of all four provinces for payment of overdue electricity bills, ARY News reported.

Under the leadership of the Prime Minister, the energy minister has already kicked off reforms to improve electricity companies and provide electricity to consumers at affordable rate, said a statement issued by the Power Division here Thursday.

Under the reforms, special attention was being given to increase financial resources, curb power theft, and ensure collection of overdue bills from consumers, it said.

The Chief Ministers have been requested to ensure the immediate payment of outstanding electricity bills, the statement said.

Sardar Awais said that due to unpaid bills, the ongoing reforms in the energy sector were being affected. Various provincial departments were neglecting the payment of electricity bills, which caused a financial burden on power companies, he added.

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He said the non-payment might also cause problems in ensuring an uninterrupted electricity supply.

The letter urges the chief ministers to intervene immediately. The non-payment of overdue bills is not only harming the federal government but also worsening the circular debt crisis.

The federal government hoped for cooperation from the provincial governments to stabilize the energy sector, it added.

Yesterday, the National Electric Power Regulatory Authority (NEPRA) issued a notification announcing a 20-paise per unit increase in electricity prices.

According to reports, this increase in electricity prices is part of the quarterly adjustment for the first quarter of the current fiscal year. According to the notification, consumers will bear an additional burden of Rs1.18 billion in electricity prices.

NEPRA had previously finalized the July to September quarterly adjustment and sent the decision to the government.

The increase in electricity prices will be applicable for December 2024 only. However, the adjustment will not apply to lifeline and prepaid electricity consumers. Additionally, under the winter package, consumers using extra electricity will also be exempted from this quarterly adjustment.