Electricity bills’ collection rises to Rs243.6bln in Nov-Jan

ISLAMABAD: Government collected Rs243.642 billion on account of electricity bills in the three months (November-January), up 19 percent year-on-year, as tariff hike, recovery drive and fuel price adjustment improved the power sector’s collection, energy ministry said on Wednesday.

The power sector’s collection increased Rs39.6 billion from Rs203.953 billion in the corresponding period a year earlier, the power division of the ministry of energy informed the Cabinet Committee on Energy (CCoE). Finance Minister Asad Umar presided over the meeting.

Tariff increase fetched the government Rs16 billion during the period under review, followed by Rs13 billion due to improved recovery from consumers including Rs6 billion due to less losses and Rs4.3 billion on fuel price adjustments.

In January, power sector’s collection amounted to Rs74.778 billion compared with Rs64.132 billion in the corresponding month a year earlier. The amount stood at Rs78.085 billion in December 2018 as against Rs61.959 billion a year ago. The figure was Rs90.779 billion in November 2018 compared with Rs77.862 billion in the corresponding month a year earlier.

The meeting was further informed that improved recovery from consumers and decrease in losses significantly contributed to the enhanced collection.

As many as 20,712 FIRs were registered and 1,909 arrests were made during the period from October 13, 2018 to February 22, 2019 to control theft. Detection bills charged amounted to Rs1.278 billion, while the amount of detection recovered was Rs537.120 million. The committee appreciated the power division’s effective drive for recoveries and theft control.

The petroleum division apprised the committee about its findings related to the matter of inflated gas bills. It was informed that report of audit being conducted in this matter will also be shared with the CCoE.

The committee further approved proposals from power division providing for all future renewable energy investments to be treated in line with the Renewable Energy (RE) Policy 2019 that envisages a framework consistent with the existing international market norms and for consumer benefits. The power division told the meeting that draft of RE Policy 2019 is currently in circulation for comments by stakeholders and would be presented to the CCoE as soon as such comments were finalised.

“All those projects which have been granted LoS (letter of support) by AEDB (Alternative Energy Development Board), shall be permitted to proceed towards the achievement of their requisite milestones as per the RE Policy 2006,” an official statement said.

“However in those cases where more than a year has elapsed since determination of tariff by Nepra (National Electric Power Regulatory Authority), their tariff would have to be reviewed by Nepra as per policy.”