LAHORE: United Business Group (UBG) Patron-in-Chief S.M Tanveer has urged the prime minister, the Federal Minister for Energy, and the Special Investment Facilitation Council (SIFC) to reduce electricity tariff to Rs26 per kWh for consumers at the earliest.
This move is crucial in the wake of the government’s action against Independent Power Producers (IPPs), he says.
According to him, the electricity tariff has already been reduced from Rs46 per kWh to Rs34 per kWh, and the industry is now expecting a further reduction to Rs26 per kWh to maintain the productivity of industrial sectors.
In a statement, Tanveer pointed out that the government had revised tariffs in 27 contracts with IPPs. He said an inquiry against windmill projects is currently under way.
The government, he said, would secure about Rs1.571 trillion in savings in future payments to IPPs, which must be passed on to consumers forthwith, he demanded.
He dispelled the impression that the process was being slowed down, stating that the FPCCI leadership was in close contact with the authorities and hopeful that the electricity tariff would be reduced to Rs26 per kWh by next month.
“The federal minister has also agreed that the elimination of Rs1.1 trillion capacity charges against 1.2 billion units produced in the country would reduce the tariff to Rs11.50,” he added.
He said the industry was facing an unprecedented crisis due to exorbitant electricity tariffs, and an immediate relief was necessary.
“The current tariff has made it challenging for businesses to operate, and if the situation persists, widespread closure of mills and industries will take place, affecting millions of workers,” he apprehended.
The leading businessman of the country has urged the government to take immediate action and announce the reduced tariff to prevent the collapse of industries and protect the livelihoods of millions of workers dependent on them.
