LAHORE: In view of 35 percent decline in the furnace oil rates used for power generation, the government should trickledown benefits to the power consumers by reducing the power tariff.
It is to be noted that there has been steep decline of 35 percent in the rates of furnace oil during the past six months.
In a statement issued here IEP Lahore Centre Chairman Eng Khalid Sajjad said that average cost of furnace oil-based IPPS, after 35 percent decline, should come down to Rs9.45 from Rs15.50. Similarly, the cost of public sector power companies should slide to Rs36.5/unit from Rs50/unit. He pointed out that currently, Pepco was charging Rs14 per unit from industrial consumers during offseason and Rs18 per unit at peak. He emphasized that the government should announce cut in the power tariffs commensurate with cut in POL prices to boost business and industrial activities as electricity cost was the major factor for high production cost in the country.
He said that the government should also consider reduction up to 14 percent in petroleum levy and 17 percent GST on oil products, which will cause hefty decrease in inflation and provide sufficient relief to the common man. He said that a reduction in electricity tariff may also range in the vicinity of more than 50 percent.
Eng Khalid Sajjad said that average collection of bills by power distribution companies fell 10 percent from 90% in 2012-13 to 80% in 2013-14. Separately, receivables of energy companies rose Rs101 billion to Rs384 billion when the current government took over in June last year.
