Cabinet okays rebasing of power tariff

ISLAMABAD: The federal cabinet has approved the rebasing of power tariff under which the government has raised electricity rates by Rs3.5 per unit on an immediate basis, and the forum has also decided to provide round-the-clock power supply to dedicated industrial feeders.

Federal Minister for Energy Khurram Dastgir said this while addressing a news conference here on Tuesday. He was accompanied by the Minister of State for Petroleum Musadik Malik. He said that their efforts would also be to minimise power interruption on mixed feeders.

The minister further said that the cabinet also considered to provide gas and electricity to five major export sectors at reduced rates. An announcement to this effect will soon be made. “We will give the tariff close to the regional countries to bolster our exports,” he said.

Regarding the power tariff increase, Dastgir said that the tariff increase was already reflected in fuel surcharges. After the increase in power tariff, the amount charged in fuel cost adjustments would go down as fuel surcharges would now be reflected in the tariff.

He also said that the tariff would be charged in phases. “In the first phase, the tariff would increase by 3.5 rupees per unit from 26th July onwards. In August, the tariff would increase by another 3.5 rupees per unit, which would be enhanced again by Rs0.90 in October,” he said. He said these three months would be difficult for consumers, but the electricity prices will start coming down from November after reflecting the fuel surcharge in the tariff.

In the international market, the energy sources’ prices have increased, including coal and gas. “We are receiving gas from friendly countries under long-term agreements. However, it has been difficult to purchase more than that.”

The minister warned, “The coming few months are going to be difficult; however, the situation will improve in November and December.” He said the government is adamant about safeguarding the interest of the poverty-stricken masses.

During the cabinet meeting, officials said that the refuelling of Karachi Nuclear Power Plant-2 has been completed and it will provide 1,100MW of electricity to the grid. The power generation of the Tarbela Dam was increased to 4,500MW. “We are seeing progress in it as well,” the minister said.

Minister of the State for Petroleum Musadik Malik said the previous government did not announce rebasing since February 2021. “However, the customers were paying the price in the garb of fuel price adjustments.” Malik also said that the latest increase in tariff would not affect over 13 million households or 45 percent of the total population.