Govt to launch new low cost electricity scheme in Nov

ISLAMABAD: The government is working on a scheme aimed at providing electricity to power consumers in winter at flat rates that will reduce their electricity bills to a large extent.

This scheme would be finalised this month and would be launched in November, a top official of the Ministry of Energy (power division) told a parliamentary committee on Tuesday.

The ministry is working on a scheme of providing cheaper electricity to consumers during winter season which will be finalised during current month. By November, the new scheme for low cost electricity will be launched, Secretary Power Division Irfan Ali while briefing Senate Standing Committee on Power said.

Currently the government is applying two different rates for peak and off peak hours which increases the end tariff for the consumers. Usually during winter the consumers uses more electricity in peak hours than off peak. Now the government will abolish peak and off peak rules and will apply flat rate throughout the day which will reduce the rate of the electricity for the consumers. However the peak and off peak rules will continue after winter season. Looking at our revenue requirements the government will introduce uniform rates in winter.

In December although the share of hydro power generation decreases but even then the government will ensure the provision of cheaper electricity to the consumers, he added.

The official also said that currently the power sector circular debt is Rs1200 billion and unless it is reduced investment cannot come to the country.

He said that loadshedding has been eradicated on around 100 feeders of SEPCO as there is no theft. He said that to control theft ABC cables have been installed at some locations and by December, theft will be eradicated on another 150 feeders, he added.

Senator Maula Bakhsh Chandio said that loadshedding has made lives of residents of Hyderabad hell. Why you are applying Martial Law like rules in Hyderabad, he questioned.

Secretary Power informed that enough progress was done on the Solar plant in Sanjwal but there were some problems related to wheeling which requires amendment in Nepra Act. He said that for wheeling Nepra Act is being amended to remove its shortcomings.

Irfan Ali said that currently there is 35,000MW of electricity available in the system and some more projects are coming online. Senator Nauman Wazir said that the government is required to make electricity market in the country so the Discos should get profit.

Regarding Pesco the committee was informed that the line losses are much higher than Nepra’s allowed limit. Secretary Power said that these losses are being transferred to the consumers and they are paying for it.