Govt all set to offer seasonal power tariff for next winter

ISLAMABAD: The government is gearing up to introduce a seasonal electricity tariff regime next winter under which flat tariff will be enforced for domestic consumers encouraging them to use the electricity at the maximum.

“And this is how the government will not only be able to reduce the adverse impact of growing capacity payments trap, but will also help reduce the consumption of gas during the winter season by the domestic sector. Under the new regime, the domestic consumers will be encouraged to switch on to electric appliances such as electric heaters and inverters for heating purposes. They will also be encouraged to use electric cooking range in the kitchen using the flat rate,” SAPM on Power and Petroleum Tabish Gauhar disclosed this to The News.

And with introduction of flat tariff to domestic sector particularly the 300,000 consumers who use three phase metres which are all named at ToU meters, the government has hoped to increase the consumption of 300MW in two months of winter season and reduce the use of gas in winter season by 50 million cubic feet per day (mmcfd).

“In the winter season the electricity demand massively decreases to 10,000MW whereas the peak demand in summer season stands at over 25000MW. The installed capacity of the country has reached over 36000MW.” He said that this seasonal tariff regime will benefit those domestic consumers at the maximum who have the three-phase metres.

When asked if the government will provide to domestic consumers the flat tariff over incremental use of electricity on the pattern earlier offered to large scale and small industrial consumers in last winter season, Gauhar said that this issue has not yet been finalised.

He said that in this year, the government will have to pay to IPPs the amount of Rs900 billion in the head of capacity payments which will swell to Rs1500 billion in 2023 and to ward off the impact of the growing capacity payments trap, the government wants the consumption of electricity at the maximum.

SAPM said that the authorities concerned are also in touch with National Energy Efficiency and Conservation Authority (NEECA) for availability of electric heaters, AC inverters and cooking range at lower prices to the consumers with financing from State Bank of Pakistan.

He said that the domestic gas availability has massively tumbled to 3.2 billion acre feet which is not enough even to cater to the requirements of the domestic consumers in the summer season. The reliance on imported LNG has increased and it is not possible to provide the costly gas to the domestic sector in the winter season. The government wants to abandon the use of the gas in winter for heating and cooking purposes and switch on the electric appliances.

The government in last winter season has already provided to Industry and small medium enterprises the flat tariff by scratching down the peak hours’ tariff with discount in power tariff by 25-50 percent.

The flat tariff with 25 percent discount was offered to large scale manufacturing industry on incremental consumption of electricity and tariff with 50 percent discount was provided for medium enterprises (SMEs) and due to this every effect the consumption of electricity has not only increased but also the industrial activities have also increased manifold. This can be gauged from the fact that large scale industry has shown the growth of 9.29 percent and small industry 8.31 percent.