close
Friday March 29, 2024

Govt continues zero loadshedding for industrial sector

By Israr Khan
July 12, 2016

ISLAMABAD: The government has notified reduced electricity tariff for the agriculture sector all over the country except in Balochistan, and also resumed zero loadshedding for industrial sector after Eid, as it was been discontinued in Ramazan so as to provide uninterrupted power supply to domestic consumers during Seher and Aftar hours.

The agriculture sector power consumers will now be charged Rs5.35 a unit in off peak hours instead of current rate of Rs8.85/unit; however the peak hour rate of Rs10.35 will continue.Official sources in the Ministry of Water and Power told ‘The News’ that this special concessional electricity tariff for agriculture tube-wells will cost the government Rs27 billion.

This is part of the Prime Minister Nawaz Sharif’s Rs341 billion agriculture package which he announced in September 2015 to enhance agriculture productivity by making availability of less expensive agriculture inputs including water through agri tube-wells.

It is worth mentioning that over the last few years, because of higher inventories, declining commodity prices and unfavourable weather conditions, agriculture sector has been badly affected and that also led to significant reduction in farm incomes. This package is an effort of the government to shoulder this sector, as it contributes more than one-fifth to the National GDP. It was the reason, in year 2015/16; agriculture sector grew by negative 0.19 percent against the target of 3.9pc and last year growth of 2.53percent.

According to a notification issued by the Ministry of Water and Power, agriculture consumers of all distribution companies (except Quetta Electric Supply Company- Qesco) will charge a fixed rate of Rs5.35 per unit (off peak) by reducing it from the current rate of Rs8.85/unit and that arrangement will be applicable till June 30, 2017, subject to regular payment of electricity bills by the consumers.

It further says that the difference of National Electric Power Regulatory Authority’s (Nepra) tariff and subsidized tariff for peak and off peak will be budgeted as tariff differential subsidy to be borne by federal government. The peak rate of Rs10.35/unit will continue.

During peak hours i.e. (6pm to 10pm in winter and 5pm to 11pm in summer), agri tube-wells will not be entitled to power supply. General Sales Tax (GST) will be paid by the respective provincial governments. In case of nonpayment of GST by provincial government, the consumers of the respective Distribution Company (Disco) will be charged for GST in addition to the agreed fixed rates.

It further says that in case of the positive adjustment, Fuel Price Adjustment (FPA) will be picked up by federal government. This facility will be passed on to those agri tube-wells consumers who have settled their outstanding dues with respective Discos either through complete payment or agreed instalments.