Leghari concedes in Senate power tariff high in country

ISLAMABAD: Energy Minister Awais Leghari conceded on the floor of the Senate on Thursday that the electricity prices are high in the country but, through reforms, the government will be able to provide cheap electricity to consumers in the next 18 months.

Speaking during the question-answer, the minister said the news that the federal cabinet had increased the electricity rates is circulating in the media. He said every June, the regulator sets the average price for the entire year.

“Given the rates of average hike last June, which was considered by the cabinet, Prime Minister Shehbaz Sharif said he would not put the entire burden on people. He said the burden of Rs5.72 per unit has been placed after injecting subsidies of Rs440 billion by the government,” he noted.

He pointed out that the impact of price adjustment for protected consumers would be around 2 per cent. The minister admitted that the electricity prices are high but said that it had been three months since he became a part of the government. “We will be in a position to provide cheap electricity in a year and a half; we admit that the price of electricity is high, but reforms are under way,” he contended.

Leghari said if the interest rate did not increase and dollar remains stable, the price would decrease by two to three per cent per unit in January next year. He explained the burden on industry had been reduced by Rs150 billion while many consumers are paying Rs7 and Rs15 per unit; currently the average price per unit is Rs35.

Earlier, the house adopted a unanimous condolence resolution, expressing profound grief over the sad demise of former senator Hidayatullah and his colleagues in a tragic incident of bomb blast in Damadola area of Bajaur on Wednesday. The resolution called on the federal and provincial governments to take urgent and effective measures to combat the insurgent threat of terrorism in the country. The resolution was moved by Senator Kamran Murtaza.

Replying to a question, the law minister said it was a fact that the salary of a member of the Senate is Rs170,000 per month after tax deduction, whereas a judge of the superior judiciary takes home not less than Rs1 million.

Senate Chairman Yusuf Raza Gilani announced that a meeting of the Committee of the Whole on the energy sector would be convened for thorough deliberations. The house will now meet on Friday at 10:30am.