Reduction in industrial power tariff by govt termed mere eyewash

MULTAN: Local industrialists, businesspersons and manufacturers have expressed dismay over Rs3/unit reduction in industrial tariff under the fuel price adjustment (FPA) and termed it merely an eyewash.

Owners of textile as well as value-added industry have rejected the support package for industrial consumers by the Ministry of Water and Power, saying the government added Rs 3.63 per kilowatt hour surcharges then adjusting the announced Rs 3 per kilowatt hour reduction in the industrial tariff with the fuel price adjustment.

Multan Chamber of Commerce and Industry president Fareed Mughis Sheikh Friday said the industry was expecting January electricity bill at a cost of Rs9/unit after reduction of Rs.3/Unit but technocracy put the burden of various surcharges, which in any case should not be chargeable to the textile industry (which is) fully compliant in bills payment and also receiving electricity on zero loss basis.

He said the revival of the closed capacity and turning the industry viable is only possible if the government matches the electricity tariff with the regional electricity rate of nine cents/unit.Sheikh said the textile industry is booking export orders of January onwards based on Rs9/unit after the announcement of the tariff cut by the prime minister.

He appealed the PM to direct the power ministry to remove the notified surcharges imposed over and above the determination by the National Electric Power Regulatory Authority.Sheikh said both the ministries of Water and Power and the Finance have nullified the PM’s announcement.

“Especially, the Finance Ministry is more interested in balancing the budget under the International Monetary Fund pressure than reducing cost of doing business and strengthen exports,” He went on to say there was no need of subsidy in the form of the fuel price adjustment if the government were to remove the three-rupee surcharge, which was an extortion due to a combination of system inefficiencies arising out of dues recovery, line losses, loans for delayed payments to independent power producers, penalties and a 50 per cent reduction in subsidy for managing uniform tariff.