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Rs90b subsidy ended: Govt imposes up to Rs4/unit surcharge on electricity tariff

byCustoms Today Report
12/06/2015
in Business
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ISLAMABAD: The relief period, provided to the consumers after massive cut in prices of petroleum products, has over as the Ministry of Water and Power has issued notification of imposing up to Rs4 per unit surcharge on the electricity tariff.

According to the notification, the government has reduced the subsidy up to Rs2.50 per unit and imposed surcharges up to Rs4 on different categories of the electricity consumers, who will be deprived of around Rs90 billion relief.

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On the request of CCPA, Nepra had reduced the electricity tariff for year 2014-15. The reduction was up to Rs4 per unit after reduction in oil prices. The benefit of reduction in line losses and theft was also provided to the users in that reduction. The objective of the reduction was to decrease the tariff and provide relief to general public.

In order to not pass on the benefit of reduction of oil prices and decrease in line losses to general public, on the request of government, Nepra allowed the imposition of these surcharges up to Rs4.

However, there is no additional burden or increase in tariff for the majority of consumers, falling in the categories between 1 to 300 units. Additionally, in the tariff category for consumers between 200 to 300 units, the tariff is even lower than the previous year, said a ministry of water and power handout.

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