LAHORE: The federal government should cut power tariff by 12 per cent as the oil prices in the international market have further decreased.
Pakistan produces most of its electricity through oil and the oil prices have been cut by 28 per cent to $78 from $115 per barrel since mid of the month of June this year.
In the running month, National Electric Power Regulatory Authority (Nepra) reduced power tariff by Re1 per unit against fuel adjustment surcharge, but just for three months.
Cost of power was slashed by 5 paisa per unit for the month of July, 77 paisas per unit for the month of August and 12 paisas per unit for the month of September. Relief will be provided to the consumers through electricity bills for the months of December, January and February.
On the other hand, the federal government is already in pressure because of prolonged sit-in by the Pakistan Tehreek-e-Insaf (PTI) in Islamabad. The PTI has also taken the credit of reduction in petroleum prices.
PTI Chief Imran Khan had alleged that the government was raising power tariffs in the country to repay loans obtained from the International Monetary Fund (IMF). He stated that the prices of petrol and diesel had decreased by 25 per cent internationally, but in Pakistan, the price of petrol had only been decreased by just Rs9.
In October, Prime Minister Nawaz Sharif had directed the government to maintain electricity prices at the current level, ignoring Nepra’s recommendation for an increase. The government had also decided to continue with subsidies for domestic and agricultural consumers to lessen the burden of expensive energy mix in power generation.
The average national tariff determined by Nepra for the year 2013-14 was Rs13.81 per unit while the average national tariff in October was Rs11.52 per unit.
Recently, the government had notified a 29 paisa per unit equalisation surcharge which was intended to offset a reduction of 30 paisa per unit due to fuel price adjustment resulting in zero impact on consumers.
However on the start of November, the Nepra increased the electricity tariff by Rs0.52 per unit. The Central Power Purchasing Agency (CPPA) had sought an increase over Rs1 per unit, stating that production exceeded Rs60.53 billion due to additional use of fuel during September.
